cost accounting
This query is : Open
22 June 2017
ABC Company has a present level of sales of Rs. 50,00,000. The firm plans to change its credit period and estimates that the change will result
in increased sales of Rs. 5,00,000. Given this information, how much will be the potential addition to profits on account of the enhanced sales
assuming the ratio of variable cost to sales to be 0.85
in increased sales of Rs. 5,00,000. Given this information, how much will be the potential addition to profits on account of the enhanced sales
assuming the ratio of variable cost to sales to be 0.85
22 June 2017
Profit will increase by Rs.75000/--
22 June 2017
piz reply with solution
22 June 2017
Increase in sales is 500000. variable cost is 425000(500000*0.85). Cont will be 75000.
So increase in profit is 75000 as no change is there in fixed cost.
So increase in profit is 75000 as no change is there in fixed cost.
22 June 2017
thank you mam
Message likes :
1 times
22 June 2017
Welcome. Pleasure is mine
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- Booth for sales promotion
- Presumptive income under 2025 ACT
- TAX AUDIT QUESTION
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- LIABILITY ADJUSTMENT
- Capital Gains on sale of residential flat
- Accounting with Claude
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
