ABC Ltd. has been operating at 70% capacity and the following particulars relate to the present level of activity:
|
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the export order will entail an extra expenditure in the form of special packing at 608749
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|
3,500 |
|
Direct materials |
Rs. 10, 500 |
|
Direct labour |
Rs. 5,250 |
|
Variable overhead |
200% of direct labour |
|
Fixed overhead |
Rs. 14,000 |
|
Sales |
Rs. 47,250 |
ABC Ltd received an export order for 1,000 units of its product at Rs. 10 per unit. The export order will entail an extra expenditure in the form of special packing at Re 0.50 per unit. Is the export order worth?
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