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Prepare the profit or loss account for sale

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Reference no: EM132562071

Fancy Bag company purchases Ladies Bags from a wholesaler @ Rs 1100/- per piece. They add accessories and packaging and sell each bag for Rs 1800/- per piece. They incur certain fixed expenses. The company wants to understand how many pieces they must sell in order to be profitable. They seek the help of a Management accountant to:

Question a. Ascertain Contribution per piece and as a % of Sales Price

Question b. Prepare the Profit / Loss account for sale of 200 pieces 300 pieces

Details provided:

Purchase Cost 1100 per pc Sale 1800 per pc Expenses Per Month Rent 50000 Staff Salary 75000 Commission per pc 100

Reference no: EM132562071

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