Question
What is a rational number?Is it true that every integer is a rational number?
What is a rational number ? Is it true that every integer is a rational number?
Accounts Tax GST
Nov. 24, 2021, 2:40 p.m.
Answer
A single product is manufactured by PS Ltd which is facing severe competition in selling it at BWP 100 per unit. At 60% level of activity, the company is operating and at that level, sales are BWP 2 400 000. Variable costs are BWP 60 per unit. At BWP 180 000, when the output is nil, the semi-variable costs may be considered as fixed and the variable element is BWP 500 for each additional 1% level of activity. At the present level of activity, fixed costs are BWP 300 000 but those costs are expected to increase by BWP 100 000, if level of activity of 80% or above is reached.
To cope with the competition, a proposal of reducing the selling price by 5% is considered by the management of the company. You are required to prepare a statement showing the operating profit at level of activity 60%, 70%, 80% assuming that
the selling price remaining at BWP 100, &
there is a reduction in the selling price by 5%
Also show the number of units which will be required to be sold for maintaining the present profits if the company decides to reduce the selling price by 5%
To cope with the competition, a proposal of reducing the selling price by 5% is considered by the management of the company. You are required to prepare a statement showing the operating profit at level of activity 60%, 70%, 80% assuming that
the selling price remaining at BWP 100, &
there is a reduction in the selling price by 5%
Also show the number of units which will be required to be sold for maintaining the present profits if the company decides to reduce the selling price by 5%
