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An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.?
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An undertaking received an order for 10000 units. The following is the...
Profit per Unit:
Cost per unit = Material + Direct Labour + Overhead
= ₹30 + ₹25 + (₹30000 + ₹11000 + 60% of ₹12000)
= ₹30 + ₹25 + (₹30000 + ₹11000 + ₹7200)
= ₹30 + ₹25 + ₹48200
= ₹48255
Selling Price per unit = ₹87.5
Profit per unit = Selling Price per unit - Cost per unit
= ₹87.5 - ₹48255
= ₹38.25
Profit per Unit for 12500 Units:
Cost per unit remains the same for 12500 units i.e., ₹48255.
Total Fixed Overhead Charges = ₹30000
Total Variable Overhead Charges = ₹11000*(12500/10000) = ₹13750
Total Semi Variable Overhead Charges = ₹12000*(12500/10000) = ₹15000
Total Overhead Charges = Total Fixed Overhead Charges + Total Variable Overhead Charges + Total Semi Variable Overhead Charges
= ₹30000 + ₹13750 + ₹15000
= ₹58750
Total Cost for 12500 Units = Cost per unit * Number of Units + Total Overhead Charges
= ₹48255 * 12500 + ₹58750
= ₹6,144,375
Selling Price for 12500 Units = ₹87.5 * 12500
= ₹1,093,750
Profit for 12500 Units = Selling Price - Total Cost
= ₹1,093,750 - ₹6,144,375
= -₹5,050,625 (Loss)
Explanation:
When the number of units manufactured increases from 10000 to 12500, the total cost also increases proportionately. However, the selling price per unit remains the same. As a result, the profit per unit decreases from ₹38.25 to -₹404.05 (loss) when the number of units manufactured increases from 10000 to 12500. This is because the total fixed overhead remains the same, but the total variable and semi-variable overhead increase with an increase in the number of units manufactured.
Cost per unit = Material + Direct Labour + Overhead
= ₹30 + ₹25 + (₹30000 + ₹11000 + 60% of ₹12000)
= ₹30 + ₹25 + (₹30000 + ₹11000 + ₹7200)
= ₹30 + ₹25 + ₹48200
= ₹48255
Selling Price per unit = ₹87.5
Profit per unit = Selling Price per unit - Cost per unit
= ₹87.5 - ₹48255
= ₹38.25
Profit per Unit for 12500 Units:
Cost per unit remains the same for 12500 units i.e., ₹48255.
Total Fixed Overhead Charges = ₹30000
Total Variable Overhead Charges = ₹11000*(12500/10000) = ₹13750
Total Semi Variable Overhead Charges = ₹12000*(12500/10000) = ₹15000
Total Overhead Charges = Total Fixed Overhead Charges + Total Variable Overhead Charges + Total Semi Variable Overhead Charges
= ₹30000 + ₹13750 + ₹15000
= ₹58750
Total Cost for 12500 Units = Cost per unit * Number of Units + Total Overhead Charges
= ₹48255 * 12500 + ₹58750
= ₹6,144,375
Selling Price for 12500 Units = ₹87.5 * 12500
= ₹1,093,750
Profit for 12500 Units = Selling Price - Total Cost
= ₹1,093,750 - ₹6,144,375
= -₹5,050,625 (Loss)
Explanation:
When the number of units manufactured increases from 10000 to 12500, the total cost also increases proportionately. However, the selling price per unit remains the same. As a result, the profit per unit decreases from ₹38.25 to -₹404.05 (loss) when the number of units manufactured increases from 10000 to 12500. This is because the total fixed overhead remains the same, but the total variable and semi-variable overhead increase with an increase in the number of units manufactured.
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An undertaking received an order for 10000 units. The following is the...
And undertaking receive an order for unit the following is the statement of its cost for each unit material selling price 87 over ad incruz fix 30000 variable 110 semi variable of the 50% if it 12000 calculate the profit per unit what would be the profit per unit if the number if you didn't manufactured by 12
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An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.?
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An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.?.
An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.?.
Solutions for An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.? in English & in Hindi are available as part of our courses for B Com.
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An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.?, a detailed solution for An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.? has been provided alongside types of An undertaking received an order for 10000 units. The following is the statement of its cost for each unit: Material=₹30 Direct Labour=₹25 Selling Price=₹87.5 Overhead includes (a) fixed ₹ 30000,(b) variable ₹11000, (c) semi variable (of which 60% is fixed) ₹12000. Calculate the profit per unit. What would be the profit per unit,if the number of units manufactured were 12500. The total fixed overhead charges remains unchanged.? theory, EduRev gives you an
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