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Total Marks== 30
GDB Case:
Crescent electronics is currently dealing with mobile phones and in their developmental tactics they are considering to add a new product line of tablet computers in their operations, which will surely require new technology, appropriate equipment along with skilled labor force. For this purpose procurement department of the organization is planning to lease the equipment required and estimated that the equipment could be leased at a monthly payment of Rs. 800,000. Along with this they developed an approximation that the variable costs would be Rs. 4000 per Tablet computers and it would be sold for Rs. 40,000 in Pakistani markets.
As an assistant manager of operations department you are required to calculate the followings:
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Q1 = 22.22 t. computers
Q2 = 2,800,000 p
Q3 = 23.61 t.computers
Q1 = 22.22 t. computers
Q2 = 2,800,000 p
Q3 = 23.61 t.computers
SOLUTION:
1): Q = FC/(R-VC)
= 800,000/40000-4000
= 22.222
2): for Q = 100 tablets computers, the profit or loss would be;
P = Q(R-VC)-FC
= 100(40000-4000)-800,000
= 100(36000)-800,000
= 3,600,000-800,000
= 2,800,000
3): for P = 50,000
Q = (FC+P)/(R-VC)
= (800,000 + 50,000)/(40,000 – 4000)
= 8,50,000/36000
= 23.6111
= 24 tablets computers must be sold.
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