Global Company manufactures and sells two products, product A and product B. The total monthly fixed expenses of the company are Rs.480,000. Sales price per unit of product A and product B is Rs.100 and Rs.200 and variable cost per unit is Rs.50 and Rs.80 respectively. Global’s management has set the goal to achieve the sales revenue of Rs.2,600,000 in the following month. To achieve this target, following alternatives are available to the company:
start discussion over here guys
ap ne solve kr li
Please Discuss here about this GDB.Thanks
Our main purpose here discussion not just Solution
We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions. Read More>>
For Important Helping Material related to this subject (Solved MCQs, Short Notes, Solved past Papers, E-Books, FAQ,Short Questions Answers & more). You must view all the featured Discussion in this subject group.
For how you can view all the Featured discussions click on the Back to Subject Name Discussions link below the title of this Discussion & then under featured Discussion corner click on the view all link.
Or visit this link
Please Click on the below link to see…
cm ratio a awr b main 0.5 and .6 ati hai dono apotion main same hogi correct me please if I am wrong
and please check the target profit calculation also
|Product A CM Ratio||0.50||0.6|
|Sale To Earn Target Profit||5,680,000.00||4,813,333.33|
Its wrong dear.
Fixed cost / by CS Ratio= 480000/.50 = 960,000
Target Profit ka Formula Kia hai
Syed sajjad how you calculate CS Ratio 0.5 please tell the procedure?
Ans: case (i) is better than case (ii) as it has high profit.
(i) 1,000,000 rupees
(ii) 920,000 rupees
As products of variable cost in both cases are different, so contribution margin also changes.
how to calculate
to find profit, see page-185 Q.2.
then by the help of these data
find break even sale is rupees formula on page 185.
may be u can get the answer.
hope u understand
Q.3 how to calculate net operating income