management accounting

From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,000. It could be supposed that ratio between sales and variable costs remain same. Compute. (i) New BEP (ii) Sales to earn present level of profit (iii) Sales to earn expected profit on proposed investment (iv) Maximum profit potential after tax and plant expansion

   Related Questions in Financial Management

  • Q : Problem related to margin account

    Suppose today's settlement price on a CME DM futures contract is $0.6080/DM. You have a short position in one contract. Your margin account presently has a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.5989. Compu

  • Q : Benefits of the JIT inventory control

    What are the benefits of the (just-in-time) JIT inventory control system?

  • Q : Explain all facts regarding the

    Explain all facts regarding the Black–Scholes equation.

  • Q : Owners of proprietorships Describe how

    Describe how the potential liability of owners of proprietorships, corporations and partnerships is different.

  • Q : Remark on bretton Woods system One can

    One can state that the Bretton Woods system was programmed to an eventual demise. Remark on this proposition.
    The answer to this question is associated to the Triffin paradox. Under gold-exchange system, the reserve-currency country must run BOP

  • Q : International bank crisis involving

    In brief discuss the cause & the solution(s) to the international bank crisis involving less developed countries.
    The international debt crisis started on August 20, 1982 while Mexico asked more than 100 U.S. and foreign banks to forgive its

  • Q : Explain the denotation a utility

    Explain the denotation a utility function and how it can vary between investors?

  • Q : Determine standard deviation and

    You have one hat containing normally distributed random numbers, with a mean of zero and a standard deviation of σ which is unknown. You draw N numbers φi from this hat. What is the ‘probability’ of drawing all of the numbers &ph

  • Q : An example of probabilities in a

    Illustrates an example of probabilities in a simple coin-tossing experiment.

  • Q : What is the Efficient Markets Hypothesis

    What is the Efficient Markets Hypothesis?

2015 ©TutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.