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 code language, ' SLAIN ' is written as ‘ PKCNU ’ and ' DENT ' is written as ' VPGF '. How will ' CUBOID ' be written in that language?
...Select the figure from the options that can replace the question mark (?) and complete the pattern.
What will be the angle formed between the hour hand and minute hand of a clock at 9:23 pm, when take in clockwise direction from the minute hand?
If all the vowels in the word ‘REJECTION’ are changed to the next letter in the English alphabetical order and all the consonants remain the same th...
Select the figure that will come in place of the question mark (?) in the following figure series.
Select the word that CANNOT be formed by using the letters of the given word.
COURAGEOUS
Select the option that is related to the third term in the same way as the second term is related to the first term.
KJPO: PQKL:: LINO:?
WATER : RVOZM :: BOTTLE : ?
In the word ‘IMPORTANT’ all consonants are written as their preceding letter and all vowels are written as their following letters. Now all letters...
In the given series, how many odd numbers are immediately preceded and immediately succeeded by an alphabet?
