#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.

What is cmm, CMM is an internationally recognized standard for calculating ...

CMM is an internationally recognized standard for calculating the maturity of an organization's software development processes and has become the primary benchmark multinational co

Normality and that seasonality is not a factor, One item a computer store s...

One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it

What is the overall purpose to the statement of cash flows, 1.    Provide...

1.    Provide at least three characteristics of a corporation (in your own words).   2.   The date on which a cash dividend becomes a binding legal obligation is known

Accounting for job order costing - direct materials, Accounting for Job Ord...

Accounting for Job Order Costing - Direct Materials Direct materials (i) Dr Stores ledger control Account Cr Cash Account - for cash purchasers              X (ii) D

Gain on the sale of the discontinued operation, NSC Ltd. has a 31 May fisca...

NSC Ltd. has a 31 May fiscal year-end. NSC disposed of its Information Systems Group (ISG) on 31 January 20X3. ISG had a net loss (after taxes) of $37,700,000 in 20X3, to the date

Variance analysis and standard costing, Variance Analysis and Standard Cost...

Variance Analysis and Standard Costing Standard costing is defined with CIMA like a technique that uses standards for revenues and costs for the purpose of control via varianc

Adjustment entries, Accounts are prepared according to accounting concepts,...

Accounts are prepared according to accounting concepts, principles and conventions. As final accounts are prepared on accrual basis, this becomes essential to subtract all those ex

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

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