CoursHeroTranscribedText: A factory produces 24000 units. The cost sheet gives the following information Direct Material...
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CoursHeroTranscribedText: A factory produces 24000 units. The cost sheet gives the following information Direct Material Rs. 120000 Direct wages Rs.84000 Direct wages Rs.48000 Variable overheads Rs.28000 Semi variable overheads Rs.28000 Fixed overheads Rs.80000 Total Cost Rs.360000 The product is sold at Rs.20 per unit. The management proposes to increase the production by 3000 units for sales in the foreign market. It is estimated that the semi-variable overheads will increase by Rs. 1000. But the product will be sold at Rs.14 per unit in the foreign market, However no additional capital expenditure will be incurred. The management seeks your advice as a cost accountant. What will you advise them
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