GCL Ltd. Produced and sold 15, 000 school bags during the financial year 2020-21. The...
60.1K
Verified Solution
Link Copied!
Question
Accounting
- GCL Ltd. Produced and sold 15, 000 school bags during the financial year 2020-21. The average selling price per bag is 110. The companys variable cost for manufacturing is 40 per unit and variable marketing is 20 per unit. The total fixed cost of the company is 5, 60, 000.
Answer the following questions independently,
- How many units the company has to produce and sale to reach the breakeven situation?
- What is the Margin of Safety (in rupees) of the company?
- In the next financial year (2021-22), the company is expecting that its variable manufacturing cost will increase by 20% and the selling price per unit will also go up by 20%. The company wants to earn the same amount of profit like the previous financial year (2020-21). In that case, how many units of school bags the company will have to sale to earn its target profit?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.