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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
Characteristics of product life cycle The major characteristics of life-cycle concept are as follows: 1) The products have finite live and pass by the cycle of development i
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what is Long term budgets Long term budgets: The budgets are prepared to depict long term planning of the business. The period of long term begets various between five to ten
What is Cost unit While the cost centres assists in ascertaining costs by location, person, equipment, operation or process, cost unit is a unit of product, service or a combin
The CP introduced in the Indian financial market, for the recommendations of the Vaghul Committee has turn into a well-liked debt instrument of the corporate world. Commercial Pape
identify and explain the many classification of costs for planning, control.performance evaluation and decision making.
The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the paint cans instead of purchas
Deposits from the public are one of the important sources of finance mainly for fine established big companies along with a vast capital base. The period of public deposits is rest
Alternative performance measures There are various measures that can be used to measure performance of a decentralized company. The major ones are: • Return on Investmen
Marginal cost or incremental cost pricing method: Here the company may work on the premise of recovering its marginal cost and getting a contribution towards its overheads. Thi
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