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# MGT 402 GDB # 01 LAST DATE 25-JAN-2018

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salam..tariq bhai is ka solution?

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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 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.

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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 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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