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A company manufactures a one product. Estimated cost data regarding this product and other information for the product and the company are as follows:Sales price per unit Rs.2000Total variable production cost per unit Rs1100Sales commission (on sales) 5%Fixed costs and expenses:Manufacturing overhead Rs 27,99,36,000General and administrative Rs 18,66,24,000Effective income tax rate 40%How many units must the company sell in the upcoming year in order to reach its breakeven point? Show all workings. Recalculate the breakeven point for Sales price per unit Rs 2750 and Variable Cost per unit Rs 1350. Tax and Sales Commission rates remain unchanged
State the Penetration pricing As opposed to the skimming pricing the objective of penetration pricing is to gain a foothold in a highly competitive market. The objective of thi
What are the Advantages of contributionmargin analysis the concept of contribution is variable aid to management in making managerial decisions . a few benefits resulting from
Prepare an estimation of working capital needs from the subsequent information of a trading relates with: (a) Projected Annual Sales 1,00,000
Moore Company uses process costing. The following information was available for October: During October, 1,000 units were started, and costs incurred during the month were
Product life cycle costing It is an approach used to give a long term picture of product line profitability feedback on the effectiveness of life cycle planning and cost data t
Game Theory Game theory was developed for the purpose of analyzing competitive situation involving conflicting interests. In game theory, there are assumed to be two or more pe
What is Sealed bid pricing Another from of competition oriented pricing is the sealed bid pricing. In a large number of projects, industrial marketing and marketing to the gove
Difference between budgetary control and standard costing Budgetary control The budgets are prepared for the concern as a whole. The budgets are fixed on the basis of p
COST-VOLUME PROFIT (C-V-P) ANALYSIS INTRODUCTION You can employ cost-volume-profit analysis to examine the natural relationship among cost, volume, and profit in pricing decision
Project C would involve a current outlay of $50,000 on equipment and $15,000 on working capital. The investment in working capital would be increased to $21,000 at the end of the f
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