A company is at present working at 90% of its capacity and producing 8,000 units per annum. It operates a flexible-budgetary control system. The following figures are obtained from its budget:
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90% Capacity Rs. Don't use plagiarized sources. Get Your Custom Essay on
what would you recommend for an export price of these 1 000 units taking into accoun 609594
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100% Capacity Rs. |
|
|
1. Sales |
12,00,000 |
15,00,000 |
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2. Fixed expenses |
2,50,000 |
2,50,000 |
|
3. Semi-fixed expenses |
75,000 |
1,00,000 |
|
4. Variable expenses |
1,25,000 |
1,50,000 |
|
5. Units made |
9,000 |
10,000 |
Labour and the material cost per unit are constant under present conditions. profit margin is 10%.
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