student
30 Points
Joined September 2012
plz solve this .......urgent.
a company manufactures and sell a product, the price is controlled by government .raw material required for this product is also made available @ fixed controlled price .the following figures hv been called for the previous two accounting year of company
year 1 year 2
qnty sold(tonnes) 1,26000 1,44000
price pre tonne rs 185 rs 185
rs in thousands
sales value 23,310 26,640
raw material 11340 12960
direct labour 1,512 1,872
factory
administration
and selling expenses 9702 11232
profit 756 576
during yr 2 direct labour is increased by 8% ,increase in factory admin and
selling expenses were rs 8,10,000 on account of factor other than the
increased quantities produced and sold.
the managing director desires to know what quantity if they had produced and
sold would hv given the company the same net profit per tonne in yr 2 as it is earned during year 1.advise me.