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Case

 

Rehman Sugar Mills is well known for its refined sugar. In the year of 2013, it sold 35,000 bags containing 1.75 million kilograms of refined sugar at Rs. 2,250 each bag.

The variable production and operating costs for the year were;

a)   Purchase cost of sugarcane is Rs.15 per kg;

b)   Crushing process requires Rs.7 per kg;

c)   Boiling the pulp needs Rs. 3 per kg;

d)  Sugar refinement costs Rs. 2 per kg; &

e)   Other variable operating expenses Rs. 9 per kg

Rent of the factory’s outlet for the year was Rs. 1.5 million per month. Depreciation of the company’s plant and other assets was Rs. 36.80 million per year. Misc. fixed operating expenses were Rs.16 million for the year.

For year 2014, it is expected that the sale price will remain the same. But, the demand will be increased by 10%. Accordingly, the variable costs will also be increased by 15%.

Required:

1.   Break even point in units and value both for the current and next year.  (3 Marks)

2.   Income statements of both the years.                                                       (4.5 Marks)

3.   If the mills need to earn net profit of Rs. 350,000 in the year of 2014, how many bags it needs to sell.  (2.5 marks)

 

Important:

24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

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Replies to This Discussion

extended day means ...the day after due date ... u are suppose to submit it today

koi tay 2nd question ka and upload karo ( and gar zarori bato say ijtanab karo) 10 pages tak conversation ponch gae hay per proper idea ya solution haly tak nai aya ....

Income statement Rehman Sugar Mills 2013

Sales                                                 787,50000

Variable Cost                                       6300,000

Contribution Margin                        724,50000

Fixed Cost                                           708,0000,0

Profit                                                  265,0000

Ya income statement thek ha please muja batao............

galat ha 

bcoz 63000000 ha aur is waja se ap ki figures galat ho rahi han

10 marks ki assignment or 10 page ho gae discuss karty huay mgar abhi be assingmnet solve nh ho saki

koi c question ka answer tu bta de please aur sath me calculations b

please koi tu send karo c question ka solution

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