The paras steel company has started a business of steel buckets. They have provided the following information regarding their costs Variable cost=Rs.20 Fixed cost=Rs.50,000 Selling price=Rs 70 They can produce 2000 buckets a year. They need to make an informed decision on the following matters They want to know the break even quantity The manager wants to earn a profit of Rs.30,000.How many units have to be sold to achieve this target Paras steel company feels that they can manufacture 600 buckets more per year with an additional fixed cost of Rs.2000, what should be the selling price so that they maintain the profit per bucket as at (ii) above.
The paras steel company has started a business of steel buckets. They have provided the following information regarding their costs Variable cost=Rs.20 Fixed cost=Rs.50,000 Selling price=Rs 70 They can produce 2000 buckets a year. They need to make an informed decision on the following matters They want to know the break even quantity The manager wants to earn a profit of Rs.30,000.How many units have to be sold to achieve this target Paras steel company feels that they can manufacture 600 buckets more per year with an additional fixed cost of Rs.2000, what should be the selling price so that they maintain the profit per bucket as at (ii) above.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...
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The paras steel company has started a business of steel buckets. They have provided the following information regarding their costs
Variable cost=Rs.20
Fixed cost=Rs.50,000
Selling price=Rs 70
They can produce 2000 buckets a year. They need to make an informed decision on the following matters
- They want to know the break even quantity
- The manager wants to earn a profit of Rs.30,000.How many units have to be sold to achieve this target
- Paras steel company feels that they can manufacture 600 buckets more per year with an additional fixed cost of Rs.2000, what should be the selling price so that they maintain the profit per bucket as at (ii) above.
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