A factory is currently running at 50% capacity and produces 5,000 units at a cost of ₹180 per unit as per the details given below: ₹ Material 100 Labour 30 (₹12 fixed) Factory overheads 30 (₹12 fixed) Administration over

CS Executive · Cost and Management Accounting · PYQS · December 2013
A factory is currently running at 50% capacity and produces 5,000 units at a cost of ₹180 per unit as per the details given below: ₹ Material 100 Labour 30 (₹12 fixed) Factory overheads 30 (₹12 fixed) Administration overheads 20 (₹10 fixed) The current selling price is ₹200 per unit. At 60% working capacity, material cost per unit increases by 2% and selling price per unit falls by 2%. Estimate the profit of the factory at 60% capacity.

Topics: Marginal Costing

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