Estimate the total fixed cost, Managerial Accounting

Assignment Help:

Question:

  (a) For a business annual sales are Rs 50,000 and variable expenses are Rs 35,000 and fixed expenses are Rs 25,000. The owner wants to earn at least Rs 5,000 as profit, how much he will have to sell?

  (b)  A company is venturing into a new product line and it estimates that it would sell 15,000 units during a full year at a price of Rs 10 each.  It also estimates that the total fixed cost as applicable to this product would be Rs 34,000 and variable cost of production per unit would be Rs 6.  Now the question is at least how much to sell to avoid losses.  The company also contemplates a decrease of 10 per cent in selling price because of fierce competition or an increase of 10 percent in its variable cost because of scarcity or an increase of  Rs 6,000 in fixed costs because of extra establishment. The company would like to know the impact of these likely changes on its profits for this product.


Related Discussions:- Estimate the total fixed cost

Evaluate marginal cost, 1. If the marginal cost of producing a good is incr...

1. If the marginal cost of producing a good is increasing as a firm produces more of the good, then which of the following must be true? a. AFC is rising               b. AVC i

#, Describe the important role that the corporate level strategy has in rel...

Describe the important role that the corporate level strategy has in relation to the development of the business and functional strategy in a multi -business organization

Payback period, if equipment will be depreciated on a straight-line depreci...

if equipment will be depreciated on a straight-line depreciation basis over a five year period with an estimated residual value, what do I do with this information in a investment

Graphical method, GRAPHICAL METHOD Graphical methods can be used in gam...

GRAPHICAL METHOD Graphical methods can be used in games with no saddle points and having pay off m X 2 or 2 X n matrix. The aim is to substitute a much simpler 2 X 2 matrix for

Mortgages, You want to purchase a house that costs $325,000. You have a dow...

You want to purchase a house that costs $325,000. You have a down payment of $65,000 and will take out a mortgage to make up the difference. The AMC Mortgage Corporation offers a q

Public deposits, Deposits from the public are one of the important sources ...

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

Application areas of linear programming, 5 application areas of linear prog...

5 application areas of linear programing in management accounting

accounts payable turnover ratio , Accounts Payable Turnover Ratio is a sh...

Accounts Payable Turnover Ratio is a short-term liquidity measure which is used to calculate the rate at which a company pays off its suppliers. Accounts payable turnover ratio is

Full service non recourse, Full Service Non Recourse: in this method the b...

Full Service Non Recourse: in this method the book debts are purchased through the factor assuming 100 percent credit risk. In case of default through the debtor the whole risk is

Pricing over the life cycle of a product, Q. Pricing over the life cycle of...

Q. Pricing over the life cycle of a product? The cycle begins with the invention of the new product. The innovation of a new product and its degeneration to a common product is

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd