#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.

Perform an incremental analysis, Bakers Bagels LLC produces and sells 20 ty...

Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid

Depreciate assets, Are non-profit and governments required to depreciate as...

Are non-profit and governments required to depreciate assets? Why or why not? Would it make sense for them to use double declining balance? Is there a difference between a non-p

What is bep, BEP- Break Event Point: It shows no Loss and no Profit The ...

BEP- Break Event Point: It shows no Loss and no Profit The level of activity at which, total revenues equivalent total costs. A point at which there is no profit and no loss.

Determine difference between results using marginal costing, Determine Diff...

Determine Difference between Results Using Marginal Costing and Absorption Costing The overhead absorption rate for product X is Ksh.10 per machine hour. All unit of product X

Determine the total after-tax annual cost, What is the total after-tax annu...

What is the total after-tax annual cost of a machine producing bolts with a first cost of $45,000 and operating and maintenance costs of $0.22 per unit per day? It will be sold for

Elements of non - manufacturing costs, Elements of Non - Manufacturing cost...

Elements of Non - Manufacturing costs Non-Manufacturing costs are costs incurred via all activities such support the production of services and goods. They are selling costs

Give feasibility study and propose an electronic system, A small company em...

A small company employing around 25 people manufactures and sells anthropometric measuring equipment - equipment used mainly in hospitals to measure the height and other dimensions

How long does it acquire to implement fca?, It takes about two to three yea...

It takes about two to three years to fully execute FCA and get all employees comfortable with it. Even then, the process will still develop. In Greensboro, North Carolina, it took

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