Answer / mudunuri

Purchase is meant for sale or Consumption in the manufacturing process or consumption in the execution of contracting works. Hence purchase of asset should not be treated as purchase

Non-performing Asset (NPA)

3 Answers   Bank Of America,

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2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: fixed 42,000 variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: fixed 36,000 varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.

0 Answers  

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what is differnce between balance sheet of a bank & a company

0 Answers   Banking, Standard Chartered,

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what is FIC

1 Answers   HDFC,

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What should an organization expect from me?

0 Answers  

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what is the journal entry for payment of interest for loans.?

4 Answers   Alpha Solutions,

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Various Taxes available in Accounts Payable

0 Answers   Accenture,

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what is the difference between proforma invoice , commercial invoice and invoice

5 Answers  

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what are profitability ratios?

4 Answers   BA Continnum Solutions, FirstSource,

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what is bills payable and bills receivable?

2 Answers  

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hi my name is nagesh,am working in constructions company i have one dout tally software purchase it is asset or expenditure.pls reply ASAP.

2 Answers   Mico,

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discuss depreciation and types of depreciation

2 Answers  

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