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Marginal costing

Costing

How to solve point 2

Screenshot_2022-05-10-13-49-18-42_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Subramanyam N

Subramanyam N

CA Inter

6K+

10-May-22 13:49

512

Answers (4)

Best Answer

Profit A = 400000(20-12)-3000000=200000 Profit B = 400000(20-14)-2100000=300000 So process B is better based on profitabiliyt Even if capacity is increase, there is no mention of increase in sales, nor reduction in fixed costs - so the contribution or profit would not change


2. We would prefer process A as by going with that process profit Is high


Pandusml V

Pandusml V

CA Final

4K+

10-May-22 14:33

I get loss for both process..

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Sajeetha R

Sajeetha R

CA Final

46K+

10-May-22 16:32

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