Statement showing the proposed increase in capacity

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Reference no: EM132051683 , Length: 3 pages

Question: Trishna limited are currently using 60% of their total capacity. Total units manufactured are 3,600 units. The management is planning to increase its capacity by 20%. The following is the summary of their costs.

Particulars Amount (Rs)
Direct materials   5
Direct Wages      3
Direct Expense    1
Fixed costs        10
Sales                22

Prepare a statement showing the proposed increase in capacity and also comment on the change due to increase in the capacity.

Reference no: EM132051683

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