Manufacturer has planned his level of operation at 50% of his plant capacity of 30,000...
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Accounting
Manufacturer has planned his level of operation at of his plant capacity of units. His expenses are estimated as follows, if of the capacity is used: Direct material Rs Direct wages Rs Variable and other expenses Rs Total fixed cost Rs The expected selling price is Rs per unit. Recently he got query for bulk order, interested in purchasing units at Rs per unit. Should the manufacturer accept the order?
Manufacturer has planned his level of operation at of his plant capacity of units. His expenses are estimated as follows, if of the capacity is used:
Direct material Rs
Direct wages Rs
Variable and other expenses Rs
Total fixed cost Rs
The expected selling price is Rs per unit. Recently he got query for bulk order, interested in purchasing units at Rs per unit.
Should the manufacturer accept the order?
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