The image contains a problem involving two products (A and B) manufactured by X Ltd.,...
50.1K
Verified Solution
Question
Accounting
The image contains a problem involving two products A and B manufactured by X Ltd with the data provided to calculate the price mix for maximum profitability, breakeven point BEP and other financial metrics. Heres a breakdown of the question: I. Price Mix for Maximum Profitability Product A: Selling price per unit: Demand: units per month labour hours per unit Product B: Selling price per unit: Demand: units per month labour hours per unit Cost Structure per Unit: Product A: Direct material: Direct labour: Variable overhead: Total cost: Product B: Direct material: Direct labour: Variable overhead: Total cost: Fixed overheads: per quarter Factory capacity: labour hours per month You are required to compute the best price mix for maximum profitability based on these parameters. Q Answer the following: X Ltd manufictures and markets products A and the demand in the market of which fluctuates with the prices quoted. As a result of the deliberations of its recent Sales Cmnference the following data were agreed upon as a working basis: labour hours are required to produce product A and labour hours to produce product and maximum cepacity of the factory is restricted to labour hours per month. The cost structure per unit of production is as under. Fixed overheads are Rs per quarter. You are required to compute the possible combinations and arrive at a proper price mix for maximum profitability. II If fixed costs are $ variable costs $ and breakeven point $ find: i Profitvolume ratio; ii Sales; iii Net profit; iv Margin of safery: III. From the following data, calculate breakeven point BEP: If sales are above BEP, determine the net protit.
The image contains a problem involving two products A and B manufactured by X Ltd with the data provided to calculate the price mix for maximum profitability, breakeven point BEP and other financial metrics.
Heres a breakdown of the question:
I. Price Mix for Maximum Profitability
Product A:
Selling price per unit:
Demand: units per month
labour hours per unit
Product B:
Selling price per unit:
Demand: units per month
labour hours per unit
Cost Structure per Unit:
Product A:
Direct material:
Direct labour:
Variable overhead:
Total cost:
Product B:
Direct material:
Direct labour:
Variable overhead:
Total cost:
Fixed overheads: per quarter
Factory capacity: labour hours per month
You are required to compute the best price mix for maximum profitability based on these parameters. Q Answer the following:
X Ltd manufictures and markets products A and the demand in the market of which
fluctuates with the prices quoted. As a result of the deliberations of its recent Sales Cmnference
the following data were agreed upon as a working basis:
labour hours are required to produce product A and labour hours to produce product and
maximum cepacity of the factory is restricted to labour hours per month.
The cost structure per unit of production is as under.
Fixed overheads are Rs per quarter.
You are required to compute the possible combinations and arrive at a proper price mix for
maximum profitability.
II If fixed costs are $ variable costs $ and breakeven point $ find: i
Profitvolume ratio; ii Sales; iii Net profit; iv Margin of safery:
III. From the following data, calculate breakeven point BEP:
If sales are above BEP, determine the net protit.
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.