ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!
  • google app store apple app store
    • тЬЦ

      Question

      What will be the contribution mix of Deepak Ltd, if for

      every five units of T-Shirts sold, six units of shirts are sold? Refer to the following information to answer the next 4 questions (Q5 to Q8) Deepak Ltd produces and sells two products – shirts and trousers. The details of the 2 products are as under: Product T-Shirt Shirt Sales price per unit Rs.800 Rs.1400 Variable Cost per unit Rs.380 Rs.420 Deepak Ltd’s fixed costs are Rs.43,89,000 per period.
      A Rs.1400 Correct Answer Incorrect Answer
      B Rs.7000 Correct Answer Incorrect Answer
      C Rs.7420 Correct Answer Incorrect Answer
      D Rs.7980 Correct Answer Incorrect Answer
      E Rs.8400 Correct Answer Incorrect Answer

      Solution

      Contribution = Sales price – variable cost Contribution per unit:

      Product T-Shirt Shirt
      Sales price per unit Rs.800 Rs.1400
      Variable Cost per unit Rs.380 Rs.420
      Contribution per unit Rs.420 Rs.980
      Sales mix = 5 t-shirts and 6 shirts Contribution mix = 5*420 + 6*980 = 2100 + 5880 = Rs.7980

      Practice Next
      More Audit Questions

      Relevant for Exams:

      ask-question