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problem 1) Distinguish between Financial Accounting and Management Accounting

problem 2) VIMAAN Company

The VIMAAN Company produces and sells a line of Camcorders with the sales price and budgeted unit costs as follows:

                                                 Rs
Sales price                                 600
Direct materials costs per unit      170
Direct labor costs per unit             50

Factory overhead costs:
Variable per unit                          90
Total Fixed                            400,000

Selling and Adm. Costs:
Variable per unit sold                  30
Total Fixed                            120,000

Required:

(a) Find out VIMAAN Company's break-even point in units.

(b) Suppose a tax rate of twenty percent. Using cost volume profit analysis, find out the number of units that VIMAAN Company would have to produce and sell to generate net income of Rs78, 000 after taxes.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M96412

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