A company is making a study of the relative profit-ability of the two products A and B in addition to direct costs, indirect selling and distribution costs to be allocated between the two products, which are provided as follows:
| Insurance coverage for inventory (finished) Don't use plagiarized sources. Get Your Custom Essay on prepare a statement showing the relative profitability of the two products 618488 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | 78,000 |
| Storage costs | 1,40,000 |
| Packing and forwarding charges | 7,20,000 |
| Salesman salaries | 8,50,000 |
| Invoicing costs | 4,50,000 |
Other details are given here:
| Product A | Product B | |
| Selling price per unit (Rs.) | 500 | 1,000 |
| Cost per unit (inclusive of indirect selling & distribution costs) | 300 | 600 |
| Annual sales (in units) | 10,000 | 8,000 |
| Average inventory (units) | 1,000 | 800 |
| Number of Invoices | 2,500 | 2,000 |
One of the product A requires a storage space twice as much as product B. The cost of packing and forward one unit is the same for both the products. Salesmen are paid salary plus commission @ 5 per cent on sales and equal ammount of efforts are put forth on the sales of each of the products
Required: (1) Set up a schedule showing the apportionment of indirect selling and distribution costs between the two products. (2) Prepare a statement showing the relative profitability of the two products
part one For this assignment you are to to watch: Shattered Glass Write a two…
Standard Project - WebServers. Instruction attached. Need all requirements, you do not have to make…
Read classmates post and respond with 100 words:The International Categorization of Diseases, Tenth Revision, Clinical…
Most Americans have at least 1 issue that is most important to them. Economic issues…
For this assignment, you are the court intake processor at a federal court where you…
Use a standard outline format to lay out how you are going to write your…