#title.Case Study., Cost Accounting

Assignment Help:
A retail dealer in garments is currently selling 24000 shirts annually. He supplies the following details for the year ended 31st December,2007.
Rs
Selling Price per shirt 40
Variable Cost per shirt 25
Fixed cost:
staff salaries for the year 120000
General office cost for the year 80000
Advertising costs for the year 40000

As a cost accountant of the firm, you are required to answer the following each part independently:-
(i) Calculate the break-even point and margin of safety in sales revenue and no of shirts sold.
(ii) Assume that 20000 shirts were sold in a year. Find out the net profit of the firm.
If it is decided to introduce selling commission of Rs 3 per shirt, how many shirts would require to be sold in a year to earn a net income of Rs 15000/-.

Related Discussions:- #title.Case Study.

Find the breakeven discount rate, The government of a small South Pacific i...

The government of a small South Pacific island is considering whether to allow development of a small but valuable deposit of phosphate rock. Not having the resources to develop an

Determine the current price of shares, 2. Blue-Jay Sporting Goods is a star...

2. Blue-Jay Sporting Goods is a start-up company that expects to earn $3.00 per share next year. Since the firm currently retains 100 percent of earnings to finance future grow

Evaluate the overhead allocation rate, Vintage Auto Company manufactures pa...

Vintage Auto Company manufactures parts to order for antique cars. Vintage Auto makes everything from fenders to engine blocks. Each customer order is treated as a job. Vintage Aut

Costs, discuss stages of accounting for costs

discuss stages of accounting for costs

Purpose of cost accounting information, Purpose of Cost Accounting Informat...

Purpose of Cost Accounting Information Cost accounting is employed for a number of reasons, some of that are briefly described in the given points as: a) Accounting for co

Gains and losses on disposal, When assets are replaced during the anticipat...

When assets are replaced during the anticipated life of the project, or at the end of the anticipated life of the project, they are sold at their pre-determined scrap values. Incom

Methods of allocating service costs, Methods of Allocating Service Costs ...

Methods of Allocating Service Costs Direct Method The service costs are merely allocated to the production department according to the usage of the services given. St

Sgtatement of Cash Flow, “The statement of cash flows is the easiest of the...

“The statement of cash flows is the easiest of the basic financial statements to prepare because you know the answer before you start. You compare the beginning and ending balances

Overhead anaylsis sheet, how do we prepare an overhead analysis sheet when ...

how do we prepare an overhead analysis sheet when the data given is already apportioned

Calculate development cost, Candler Inc a computer software development fir...

Candler Inc a computer software development firm has stock outstanding as follows: 40,000 shares of $2 nonparticipating, noncumulative preferred stock of $10 par, and 250,000 share

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