Break even point solve proper 1:48ASSIGNMENT 5There are three alternatives available to meet the demand ofa particular product. They are as follows:(a) Manufacturing the product by using process A(b) Manufacturing the product by using process B(c) Buying the productThe details are as given in the following table:COST elementBuyManufacturing theproduct by process A5,00,000Manufacturing theproduct by process B6,00,000Fixed cost/year (Rs.)Variable/unit (Rs.)175150Purchase price/unit (Rs.)125The annual demand of the product is 8,000 units. Should thecompany make the product using process A or process B or buyit?cu.edu.pkAA8

Cost is the expenses which is been incurred in order to produce a product there various component of…

There are three alternatives available to meet the demand of a particular product. They are as follows: (a) Manufacturing the product by using process A (b) Manufacturing the product by using process B (c) Buying the product The details are as given in the following table: COST element Manufacturing the Manufacturing the Buy product by process A product by process B Fixed cost/year (Rs.) Variable/unit (Rs.) 5,00,000 6,00,000 175 150 Purchase price/unit (Rs.) 125 The annual demand of the product is 8,000 units. Should the company make the product using process A or process B or buy it?

There are three alternatives available to meet the demand of a particular product. They are as follows: (a) Manufacturing the product by using process A (b) Manufacturing the product by using process B (c) Buying the product The details are as given in the following table: COST element Manufacturing the Manufacturing the Buy product by process A product by process B Fixed cost/year (Rs.) Variable/unit (Rs.) 5,00,000 6,00,000 175 150 Purchase price/unit (Rs.) 125 The annual demand of the product is 8,000 units. Should the company make the product using process A or process B or buy it?

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter27: Lean Principles, Lean Accounting, And Activity Analysis

Section: Chapter Questions

Problem 27.20EX

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