Question
Gamma Textiles Ltd. manufactures a single product with
the following cost structure: • Selling Price per unit: ₹500 • Variable Cost per unit: ₹300 • Fixed Costs per month: ₹8 lakh • Normal monthly sales: 5,000 units Due to a market recession, demand is expected to fall to 1,500 units/month. The company has the option to shut down temporarily, in which case fixed costs would reduce to ₹2.5 lakh/month (as unavoidable fixed costs). Based on marginal costing principles, what should the company do?Solution
Comparison of Two Scenarios: ✅ If the firm continues operating: • Contribution = ₹3,00,000 • Fixed cost = ₹8,00,000 • Net loss = ₹(5,00,000) ✅ If the firm shuts down: • Contribution = ₹0 • Fixed cost (unavoidable) = ₹2,50,000 • Net loss = ₹(2,50,000) Since loss is lower in shut-down mode (₹2.5L < ₹5L), the firm should still shut down temporarily.
In a language ‘red’ is called ‘green’, ‘green’ is called ‘yellow’, ‘yellow’ is called ‘white’ and ‘white’ is called ‘black...
In a certain code GONE is written as ‘5@&9’ and SEAL is written as ‘69%*’. How is LOGS written in that code?
In a certain code language ‘CURFEW’ is coded as ‘EWTHGY’ then, what is the code for ‘MAGNET’ in the same code language?
Which of the following code is coded for ‘To’?
In a certain code language, FAULT is coded as '60' and HARM is coded as '40', then how is MAGIC coded as in the given language?
- If "HUMAN" is coded as 92214215, and "GOD" is coded as 8165, how will "SPIRIT" be coded?
What is the code for ‘details’ in the given code language?
In a certain code language, ‘GEAR’ is written as ‘62’ and ‘RAIN’ is written as ‘84’. How will ‘SHOT’ be written in that code langua...
In a certain code language, 'spam protection disabled' is coded as 'bvc rsa thj' and 'calls disabled block' is coded as 'njk bvc hjm'. What is the code...
In a certain code language, 'total pages is' means '613', 'include pages index' means '158' and 'printed is index' means '648'. What can be the code fo...
