Quiz June 11, 2021 admin Let's Start the Quiz !! Supply Chain Management | Latest Questions Name Email Phone A company has the capacity of producing 80000 units and presently sells 20000 units at Rs. 100 each. The demand is sensitive to selling price and it has been observed that with every reduction of Rs. 10 in selling price the demand is doubled. What should be the target cost in selling price if the demand is doubled at full capacity and profit margin on sale is taken at 25%?Rs.25Rs.75Rs.90Rs.60T Ltd. produces and sells a product. The company expects the following revenues and costs in 2018:Revenues (400 sets sold @ `600 per product) ` 2,40,000 Variable costs `1,60,000 Fixed costs ` 50,000 What amount of sales must T Ltd. have to earn a target net income of ` 63,000 if they have a tax rate of 30%?4,29,0004,89,0004,20,0003,00,000Marketing department of an organisation estimates that 40,000 of new mixers could be sold annually at a price of `60 each. To design, develop and produce these new mixers an investment of `40,00,000 would be required. The company desires a 15% return on investment (ROI). Given these data, the target cost to manufacture, sell, distribute and service one mixer will be48.6045.0040.0037.50A Company is planning a new product. Market Research information suggests that 40,000 units of the product can be sold at a maximum of Rs.25 per Unit. The company seeks a minimum mark up of 25% on product cost. It is estimated that the life time cost of the product will be as follows ;What is the Life Cycle Cost/ Unit?22202518.75The product of XYZ company is sold at a fixed price of ` 1,500 per unit. As per company’s estimate, 500 units of the product is expected to be sold in the coming year. If the value of investments of the company is ` 15 lakh and it has a target ROI of 15%, the target cost would be:11309301050950A housewife is looking at ways of producing domestic hot water and considers two possibilities an electric immersion heater having an installation cost of ` 160 and estimated annual electrical charges of ` 200, and a gas boiler with an installation cost of ` 760 with annual fuel bills of ` 80.Assuming yourself as a consultant to this cost-conscious-housewife, advise her suitably by comparing two systems, on the basis of (i) total expenditure, and (ii) present value, over a 5-years period. Take interest at 9 percent... Total Expenditure and PV of Gas Boiler is 1160 & 11601160 & 1071938 & 10711160 & 938A Company requires ` 85,00,000 in sales to meet its target net profit. Its contribution margin is 30% and the fixed costs are ` 15,00,000. What is the target net profit?19,50,00010,50,00025,50,00035,00,000ANC Co. manufactures and sells 7,500 units of a product. The full cost per unit is `100. The Company has fixed Its price so as to earn a 30% return on an Investment of ` 7,00,000. Target selling price will be2101201281301200 units of microchips are required to be sold to earn a profit of ` 1,06,000 in a monopoly market. The fixed cost for the period is ` 74,000. The contribution in the monopoly market is as high as 3/4th of its variable cost. Determine the target selling price per unit.400450350325In WM Ltd; the “OB” equipment is about to be replaced by either CF system or by an OF System. Finance Costs 12% a Year and the other estimated costs are as follows;if the company new system at least run for 12 years; what is the total life cycle cost for OF System 176656151492316000256000A company has the capacity of production of 80000 units and presently it sells 20000 units at ` 100 each. The demand is sensitive to selling price and it has been observed that every reduction of ` 10 in selling price the demand is doubled. What should be the target cost at full capacity it profit margin on sales is taken at 25%?58 lakhs52 lakhs48 lakhs50 lakhsTime is Up! Previous Post Quiz – Marginal Costing Next Post What are the Benefits of ACCA?