What are statement showing profits at capacity utilizations

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A factory engaged in manufacturing plastic toys is working at 50% capacity and produces 50,000 toys per month. The present cost break up for one toy is as below.

Material Labour Overheads

  1. RM80
  2. RM25
  3. RM50 [60% fixed]

The selling price is RM250 per toy. If it is decided to work the factory at 60% capacity, the selling price falls by 8%. At 80% capacity, the selling price falls by 10% accompanied by a similar fall in the price of material.

Problem 1: what are statement showing the profits/losses at 50%, 60% and 80% capacity utilizations.

Reference no: EM132829956

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