As a professional Management Accountant what would be your suggestion regarding acceptance or…


Question Description:

30

As a professional Management Accountant what would be your suggestion regarding acceptance or… 1 answer below » A manufacturer has planned his level of operations at 50% of his plant capacity of 30,000 units. His expenses are estimated as follows, at 50% of the plant capacity utilization: Direct Materials 8,280 Direct Wages 11,160 Variable and other Manufacturing Expenses 3,960 Total Fixed Expenses Irrespective of Capacity Utilization 6,000 The expected selling price in the domestic market is Rs. 2 per unit. Recently, the manufacturer has received a trade enquiry from an overseas organization that is interested in purchasing 6,000 units at a price of Rs. 1.45 per View complete question » A manufacturer has planned his level of operations at 50% of his plant capacity of 30,000 units. His expenses are estimated as follows, at 50% of the plant capacity utilization: Direct Materials 8,280 Direct Wages 11,160 Variable and other Manufacturing Expenses 3,960 Total Fixed Expenses Irrespective of Capacity Utilization 6,000 The expected selling price in the domestic market is Rs. 2 per unit. Recently, the manufacturer has received a trade enquiry from an overseas organization that is interested in purchasing 6,000 units at a price of Rs. 1.45 per unit. As a professional Management Accountant what would be your suggestion regarding acceptance or rejection of the offer? Support your suggestion with suitable quantitative information. View less » Jun 10 2014 05:41 PM

Answer

30