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MGT402 - Cost & Management Accounting GDB No. 01 Solution and Discussion Spring 2013 Due Date Jul 09, 2013

Graded Discussion Board

COST AND MANAGEMENT Accounting (MGT402)

Dear Students,

This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on 5th July, 2013 for discussion and last date of discussion is 9 July, 2013.
                             Topic/area for discussion: Cost - Volume - Profit Analysis

This Graded Discussion Board will cover first 36 lessons.

Note:

For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures and read additional material available online or in any other mode.

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Replies to This Discussion

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.

e famous for stylish and affordable accessories.   

At the start of new financial year, the sales manager of the Aini & Alex (Pvt) limited has to plan about future sales of its bags section, consisting of two product lines - leather handbags and clutch purses. To plan about future sales, the sales manager is in need of data about per unit cost and profit for each product line from the company’s accountant.

Accountant demonstrates the per unit data that shows currently the company is selling leather handbags at Rs. 300 per unit and clutch purse at Rs 190 per unit respectively. Other cost data is as follows:

Details

    Leather Handbags

  Clutch Purses

 

Rs. P/U

Rs. P/U

Variable cost

130.00

110.00

Fixed cost

144.00

52.50

Profit

26.00

27.50

 

Considering the above mentioned information, answer the following:

a)   Determine per unit contribution margin, contribution margin ratio for each of the product.

b)   If the sales manager of Aini & Alex (Pvt.) Limited decides to increase production substantially any of the above two products (manufactured units are expected to be sold in the market), determine which product will be more profitable for the company to produce assuming that cost behavior pertains remain unchanged.

c)    Support your answer in part (b) based on logical reason

Lets start brain damaging

@ tehrim

U r right, VU mai brain damage he ho raha hai. aik assignment comlete kar lo, to 2 GDB , 1 quiz aor 2 assignments waiting list par hotai hai...ufffffff

ok lets start..

contribution margin = Sales minus variable cost of sale....

Now solve for contribution margin accordingly.

Chalo ab iss ko solve karo Kaha hai Faizan raza and mano rano

How to find out sales total sold units is not given

he he he he!!!!!!!!!!!!!!!!!!!!!! HEC waley pitae karain geh. Abhi hum ne PHD karni hai. Business main...............

yar abi rat MGT201 FM ki asignment ne dmagh ki surgery kr di thi ab ye syaaaaaapa...

chlo fer kuj kro hun.........

Aik ya do do page ki word file thi par hum ne yaahan us ko char chand laga diya. MashahAllah VU waley buhat mahnati hain. Allah in ko Ajar de. Ameen.

Ameen 

:)

Learning Objectives: The students are expected to learn and apply the cost-volume-profit analysis.

Scenario: 

              Aini & Alex (Pvt.) Limited launched its fashion accessories in ladies’ purses few years back in Karachi with the aim to let them handle their necessities with comfort. Now, its brands are famous for stylish and affordable accessories.   

At the start of new financial year, the sales manager of the Aini & Alex (Pvt) limited has to plan about future sales of its bags section, consisting of two product lines - leather handbags and clutch purses. To plan about future sales, the sales manager is in need of data about per unit cost and profit for each product line from the company’s accountant.

Accountant demonstrates the per unit data that shows currently the company is selling leather handbags at Rs. 300 per unit and clutch purse at Rs 190 per unit respectively. Other cost data is as follows:

Details

    Leather Handbags

  Clutch Purses

 

Rs. P/U

Rs. P/U

Variable cost

130.00

110.00

Fixed cost

144.00

52.50

Profit

26.00

27.50

 

Considering the above mentioned information, answer the following:

a)   Determine per unit contribution margin, contribution margin ratio for each of the product.

b)   If the sales manager of Aini & Alex (Pvt.) Limited decides to increase production substantially any of the above two products (manufactured units are expected to be sold in the market), determine which product will be more profitable for the company to produce assuming that cost behavior pertains remain unchanged.

c)    Support your answer in part (b) based on logical reason.

Per unit contribution margin = selling price per unit - variable cost per unit 

Contribution margin ratio = contribution margin rs / sales in rs

Do not try to copy for any solution so  for better understanding listen the lecture no 29, 30 so you can understand it and will be helpful for final term.

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....

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