Product P has a sales of 80,000 units per annum and other details as follows: Material=4,80,000 Labor=1,60,000 Variable Overheads=3,20,000 Fixed Overhead=5,00,000 Fixed portion of the capital employed is 12 Lakhs. Its varing portion will be 50% of sales turnover. Find the selling price per unit to earn 12% net on capital employed(Net of Tax @40%)
Product P has a sales of 80,000 units per annum and other details as follows: Material=4,80,000 Labor=1,60,000 Variable Overheads=3,20,000 Fixed Overhead=5,00,000 Fixed portion of the capital employed is 12 Lakhs. Its varing portion will be 50% of sales turnover. Find the selling price per unit to earn 12% net on capital employed(Net of Tax @40%)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11E
Related questions
Question
100%
Product P has a sales of 80,000 units per annum and other details as follows:
Material=4,80,000
Labor=1,60,000
Variable Overheads=3,20,000
Fixed Overhead=5,00,000
Fixed portion of the capital employed is 12 Lakhs. Its varing portion will be 50% of sales turnover.
Find the selling price per unit to earn 12% net on capital employed(Net of Tax @40%)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning