Final ama-query in solving practice manual

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Guest

Hi frnds,

I'm currently solving Latest Practice Manual of ICAI for CA FINAL ADVANCED MANAGEMENT ACCOUNTING..

I have solved Chapter No. 2 Decision Making using Cost Concepts & CVP Analysis..

I have many doubts in question..

I've got this idea of solving queries by sharing with you people,so that whoever knows about that query can answer..

Here I'm posting my querries in next comment,plz answer,also All other queries related to this chapter are also invited.. LETS SOLVE IT TOGETHER..

Replies (3)

Guest

In Problem 53,

(iv)

If mgt is producing 9Lakh bottles,out of total 10000 hours, 9000 Hours are used but 1000 hours are still available. With these 1000 hours 40000 units can still be manufactured and remaining we can subcontract.. But this option has not been taken in the solution.. Solution has taken full 1Lakh units subcontracted.. Why not the other option??

Plz guide me where I'm wrong..

Guest

Problem 36

Table in solution shows

Contribution per tonne =Rs.42

Profit required (Rs.756000/126000tonnes) =Rs.6

Balance Contribution per tonne for meeting Fixed Expenses = 36,

My question is why Balance contibution is calculated?

Also the formula is FIXED COST +DESIRED PROFIT/ PVR or contribution, with this formula we can get the sales for desired profit.. Why this formula is not working here??