Chat with us, powered by LiveChat A company is operating at 50% capacity producing 2 - Writemia

A company is operating at 50% capacity producing 2

A company is operating at 50% capacity producing 2,000 units of output which are totally sold in the domestic market at a price of Rs. 100 per unit. The cost per unit of the product is given as follows: Rs. Per Unit Direct Materials 30 Direct Wages 20 Manufacturing Overheads (20% fixed) 10 Administration Overheads (100% fixed) 8 Selling and Distribution Overheads (50% variable) 12 Total cost 80The company receives an order from the foreign market for 2000 units at a price of Rs. 80 per unit. The additional distribution cost for export is estimated at Rs. 2 per unit.Is the offer of the foreign market accepted by utlizing the spare capacity?

Do you need an answer to this or any other questions?

About Writemia

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Hire a tutor today CLICK HERE to make your first order