1) What will be your advice , if the orders were from a local merchant , at the same price ? The Cost Sheet of a product is given as under:OMRDirect Materials6.00Direct Wages3.00Factory Overheads:Fixed0.50Variable0.50Administrative Expenses:0.75Selling and Distribution Overheads:Fixed0.25Variable0.50Total11.50The selling price per unit is OMR 13. The above figures are for an output of85,000 units, the capacity of the firm is 100,000 units. A foreign customer isdesirous of buying 15,000 units at a price of OMR 10.50 per unit.

Following is the answer to the given question

The Cost Sheet of a product is given as under: OMR Direct Materials 6.00 Direct Wages 3.00 Factory Overheads: Fixed 0.50 Variable 0.50 Administrative Expenses: Selling and Distribution Overheads: 0.75 Fixed 0.25 Variable 0.50 Total 11.50 The selling price per unit is OMR 13. The above figures are for an output of 85,000 units, the capacity of the firm is 100,000 units. A foreign customer is desirous of buying 15,000 units at a price of OMR 10.50 per unit.

The Cost Sheet of a product is given as under: OMR Direct Materials 6.00 Direct Wages 3.00 Factory Overheads: Fixed 0.50 Variable 0.50 Administrative Expenses: Selling and Distribution Overheads: 0.75 Fixed 0.25 Variable 0.50 Total 11.50 The selling price per unit is OMR 13. The above figures are for an output of 85,000 units, the capacity of the firm is 100,000 units. A foreign customer is desirous of buying 15,000 units at a price of OMR 10.50 per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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