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Discussion Question:

 

Zee Corp.  is an electronics company that manufactures sandwich makers. The selling price for each unit is Rs. 1,500.  The annual production and sales of the company is 500 units. Annual fixed manufacturing overhead is Rs. 140,000 and fixed administrative expense is Rs. 100,000.  Variable costs per unit are as follows;

 

Direct material                                   Rs. 500

Direct labor                                        Rs. 200

Variable manufacturing overhead     Rs.  80

Variable selling expense                    Rs. 120

   Total variable cost                           Rs. 900

 

Required:

  1. What is the contribution margin per unit?
  2. How many units must be sold to reach the breakeven point?
  3. How many units must the company sell to yield a profit of Rs. 900,000?
  4. The company has received an offer from Aqua Company to buy 100 sandwich makers at Rs. 1,360 per unit. The per-unit variable manufacturing overhead cost for the additional units of Rs. 140 (rather than Rs. 80) will be incurred to make the units up to the mark, and Rs. 10,000 of additional fixed administrative cost will be incurred. This sale would not affect the original sales or cost. Based on quantitative factors alone, should Zee Corp. accept this offer? Justify your answer.

Note:

  1. Working/ supporting calculation is NOT required in requirement (a), (b), and (c). Marks will be given on the basis of exact answer figure only.
  2. Answer should be brief and should NOT exceed 2 lines in requirement (d).

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salam..tariq bhai is ka solution?

Dear Students Don’t wait for solution post your problems here and discuss ... after discussion a perfect solution will come in a result. So, Start it now, replies here give your comments according to your knowledge and understandings....

discuss plz

Zee Corp.  is an electronics company that manufactures sandwich makers. The selling price for each unit is Rs. 1,500.  The annual production and sales of the company is 500 units. Annual fixed manufacturing overhead is Rs. 140,000 and fixed administrative expense is Rs. 100,000.  Variable costs per unit are as follows;
 
Direct material                                   Rs. 500
Direct labor                                        Rs. 200
Variable manufacturing overhead     Rs.  80
Variable selling expense                    Rs. 120
   Total variable cost                           Rs. 900
 
Required:
What is the contribution margin per unit?
Contribution margin per unit = Selling price- VC= 1500-900 =600 per unit
How many units must be sold to reach the breakeven point?
BEP=FC/CM per unit
BEP=240000/600=400 units

How many units must the company sell to yield a profit of Rs. 900,000?
900000+240000/600=1900 units

The company has received an offer from Aqua Company to buy 100 sandwich makers at Rs. 1,360 per unit. The per-unit variable manufacturing overhead cost for the additional units of Rs. 140 (rather than Rs. 80) will be incurred to make the units up to the mark, and Rs. 10,000 of additional fixed administrative cost will be incurred. This sale would not affect the original sales or cost. Based on quantitative factors alone, should Zee Corp. accept this offer? Justify your answer.

ye khud kr lain

last Q ka bhe ans bta dy....

Zee Corp. should have to accept this offer. It have capacity to produce more quantity.  For production more 100 unit company occurred less fixed cost and variable cost per unit than others. Sold quantity and profit per unit will also increase.

please complete solution??

remaining answers

Attachments:

Zee Corp.  is an electronics company that manufactures sandwich makers. The selling price for each unit is Rs. 1,500.  The annual production and sales of the company is 500 units. Annual fixed manufacturing overhead is Rs. 140,000 and fixed administrative expense is Rs. 100,000.  Variable costs per unit are as follows;
 
Direct material                                   Rs. 500
Direct labor                                        Rs. 200
Variable manufacturing overhead     Rs.  80
Variable selling expense                    Rs. 120
   Total variable cost                           Rs. 900
 
Required:
What is the contribution margin per unit?
Contribution margin per unit = Selling price- VC= 1500-900 =600 per unit
How many units must be sold to reach the breakeven point?
BEP=FC/CM per unit
BEP=240000/600=400 units

How many units must the company sell to yield a profit of Rs. 900,000?
900000+240000/600=1900 units

The company has received an offer from Aqua Company to buy 100 sandwich makers at Rs. 1,360 per unit. The per-unit variable manufacturing overhead cost for the additional units of Rs. 140 (rather than Rs. 80) will be incurred to make the units up to the mark, and Rs. 10,000 of additional fixed administrative cost will be incurred. This sale would not affect the original sales or cost. Based on quantitative factors alone, should Zee Corp. accept this offer? Justify your answer.

ye khud kr lain

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