Question

X Ltd. manufactures readymade garments and uses its cut-
pieces of cloth to manufacture dolls. The following statement
of cost has been prepared :
Dolls
Total
Readymade
Garments
()
Materials
1,60,000 12,000 1,72,000
Labour
26,000
2,400
28,400
Variable Overheads
34,000
5,600
39,600
Fixed Overheads
48,000
6,000
54,000
Total Cost
2,68,000 26,000 2,94,000
Sales
3,40,000 24,000 3,64,000
Profit (+) Loss (-)
+72,000 -2,000 +70,000
Cutpieces used in the manufacture of dolls have a scrap
value of 4,000, if sold in the market. As there is loss of
2,000 in the manufacturing of dolls, it is suggested to
discontinue its manufacture. Advise the management.​

Answer 1

Answer:

sorry mate I don't know it