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A company working at 50% capacity manufactures 10000 units of a product. At 50% capacity the product cost is Rs 180 and sale price is Rs 200. The breakup of the cost is as below: Material Rs100 per unit; Wages Rs 30 per unit; Factory Rs 30 (40% fixed); Administrative overheads Rs 20 (50% fixed) At 60% working raw material cost goes up by 2% and sales price fall by 2%. At 80% working the raw material cost increases by 5% and sale price decreases by same percentage i.e. 5%.?
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A company working at 50% capacity manufactures 10000 units of a produc...
Analysis of the given scenario:

  • A company working at 50% capacity manufactures 10000 units of a product.

  • At 50% capacity, the product cost is Rs 180, and the sale price is Rs 200.

  • The cost breakup is Material Rs100 per unit; Wages Rs 30 per unit; Factory Rs 30 (40% fixed); Administrative overheads Rs 20 (50% fixed).



Impact of 60% working on the cost and sale price:

  • At 60% working, raw material cost goes up by 2%, and the sale price falls by 2%.

  • The new cost of raw material will be Rs 102 per unit (increased by 2% of Rs 100).

  • The new sale price will be Rs 196 (decreased by 2% of Rs 200).

  • The new product cost will be Rs 182 (Rs 102 for material, Rs 30 for wages, Rs 36 for factory (40% of Rs 90), and Rs 24 for administrative overheads (50% of Rs 48)).



Impact of 80% working on the cost and sale price:

  • At 80% working, the raw material cost increases by 5%, and the sale price decreases by the same percentage, i.e., 5%.

  • The new cost of raw material will be Rs 105 per unit (increased by 5% of Rs 100).

  • The new sale price will be Rs 190 (decreased by 5% of Rs 200).

  • The new product cost will be Rs 190 (Rs 105 for material, Rs 30 for wages, Rs 36 for factory (40% of Rs 90), and Rs 24 for administrative overheads (50% of Rs 48)).



Conclusion:

  • As the company works at a higher capacity, the cost of raw material, as well as the sale price, increases or decreases, respectively.

  • It is essential for the company to keep track of the cost and sale price to maintain profitability.

  • The company can use cost-cutting measures to reduce the cost of production and maintain profitability.

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A company working at 50% capacity manufactures 10000 units of a product. At 50% capacity the product cost is Rs 180 and sale price is Rs 200. The breakup of the cost is as below: Material Rs100 per unit; Wages Rs 30 per unit; Factory Rs 30 (40% fixed); Administrative overheads Rs 20 (50% fixed) At 60% working raw material cost goes up by 2% and sales price fall by 2%. At 80% working the raw material cost increases by 5% and sale price decreases by same percentage i.e. 5%.?
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A company working at 50% capacity manufactures 10000 units of a product. At 50% capacity the product cost is Rs 180 and sale price is Rs 200. The breakup of the cost is as below: Material Rs100 per unit; Wages Rs 30 per unit; Factory Rs 30 (40% fixed); Administrative overheads Rs 20 (50% fixed) At 60% working raw material cost goes up by 2% and sales price fall by 2%. At 80% working the raw material cost increases by 5% and sale price decreases by same percentage i.e. 5%.? 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 A company working at 50% capacity manufactures 10000 units of a product. At 50% capacity the product cost is Rs 180 and sale price is Rs 200. The breakup of the cost is as below: Material Rs100 per unit; Wages Rs 30 per unit; Factory Rs 30 (40% fixed); Administrative overheads Rs 20 (50% fixed) At 60% working raw material cost goes up by 2% and sales price fall by 2%. At 80% working the raw material cost increases by 5% and sale price decreases by same percentage i.e. 5%.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company working at 50% capacity manufactures 10000 units of a product. At 50% capacity the product cost is Rs 180 and sale price is Rs 200. The breakup of the cost is as below: Material Rs100 per unit; Wages Rs 30 per unit; Factory Rs 30 (40% fixed); Administrative overheads Rs 20 (50% fixed) At 60% working raw material cost goes up by 2% and sales price fall by 2%. At 80% working the raw material cost increases by 5% and sale price decreases by same percentage i.e. 5%.?.
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