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

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

Determine the need and importance of management accounting, Determine the N...

Determine the Need and importance of management accounting: 1.Increasing efficiency: management accounting increases efficiency of business operations. The targets of differe

Credit investigation, Once the credit information is accumulated the subseq...

Once the credit information is accumulated the subsequent step is to analyze the gathered information and isolate those matters that may need further investigation. The factors whi

Cost analysis purposes, Cost Analysis purposes For purposes of cost ana...

Cost Analysis purposes For purposes of cost analysis, the desegregation of the generic value chain into individual value activities should reflect three principles that are not

Cvp analysis and computer applications, CVP ANALYSIS AND COMPUTER APPLICATI...

CVP ANALYSIS AND COMPUTER APPLICATIONS The output from a CVP model is only as good as the input. The analysis will include assumptions about sales mix, production efficiency, p

Explain standard costing according to backer and jacobsen, Explain standard...

Explain standard costing according to backer and Jacobsen According to backer and Jacobsen, standard cost is the amount the firm to measure the variation from standard costs th

Maximum Price company would pay, Cause Company is planning to invest in a m...

Cause Company is planning to invest in a machine with a useful life of five years and no salvage value. The machine is expected to produce cash flow from operations of $20,000 in e

What is budgetary control, What is Budgetary control Budgetary control...

What is Budgetary control Budgetary control is the process of determining various budgeted figures for the enterprises for the future period and then comparing the budgeted fi

Cindy, School problem is asking to calculate the work in progress inventory...

School problem is asking to calculate the work in progress inventory for the beginning of a month without providing previous month data.

Financial management, discuss the applicability of an operating cycle in ve...

discuss the applicability of an operating cycle in vegetable growing in a low developed country like Uganda- Africa

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