Accounting For Managers - Management Accounting-Marginal Costing
Additional Illustrations-Marginal Costing
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From the following information, find out the amount of profit earned during the year, using marginal cost equation:
Additional Illustrations
from the following information, find out the amount of profit earned during the year, using marginal cost equation:
Fixed Cost Rs.5,00,000
Variable Cost Rs.10 Per Unit
Selling Price Rs.15 Per Unit
Output Level 1,50,000 Units
Solution:
Determine the amount of fixed costs from the following details, using the marginal cost equation.
Solution:
Sales 10,000 Units @ Rs.25 Per Unit
Variable Cost Rs.15 Per Unit
Fixed Costs Rs.1,00,000
Find Out The Sales For Earning A Profit Of Rs.50,000
Solution:
Sales To Earn A Profit Of Rs.50,000
The records of ram ltd., Which has three departments give the following figures:
The management wants to discontinue product c immediately as it gives the maximum loss. How would you advise the management?
Solution:
Here department A gives negative contribution, and as such it can be given up. Department C gives a contribution of Rs.5,000. If department C is closed, then it may lead to further loss. Therefore, C should be continued.
Illustration 16:
from the following information, find out the amount of profit earned during the year, using marginal cost equation:
Fixed Cost Rs.5,00,000
Variable Cost Rs.10 Per Unit
Selling Price Rs.15 Per Unit
Output Level 1,50,000 Units
Solution:
Illustration 17:
Determine the amount of fixed costs from the following details, using the marginal cost equation.
Sales | Rs.2,40,000 | |
Direct
Materials | Rs. | 80,000 |
Direct
Labour | Rs. | 50,000 |
Variable
Overheads | Rs. | 20,000 |
Profit | Rs. | 50,000 |
Solution:
Illustration 18:
Sales 10,000 Units @ Rs.25 Per Unit
Variable Cost Rs.15 Per Unit
Fixed Costs Rs.1,00,000
Find Out The Sales For Earning A Profit Of Rs.50,000
Solution:
Sales To Earn A Profit Of Rs.50,000
Illustration 19:
The records of ram ltd., Which has three departments give the following figures:
The management wants to discontinue product c immediately as it gives the maximum loss. How would you advise the management?
Solution:
Here department A gives negative contribution, and as such it can be given up. Department C gives a contribution of Rs.5,000. If department C is closed, then it may lead to further loss. Therefore, C should be continued.
Tags : Accounting For Managers - Management Accounting-Marginal Costing
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