Answer | ||
i) Computation of Overall Cost for a batch of 10,000 drones |
||
Particulars | Amount ($) | |
Material Cost | $630,000 | |
($ 63 x 10,000) | ||
Labor Cost | $240,000 | |
($ 24 x 10,000) | ||
Overhead cost | $1,100,000 | |
($110 x 10,000) | ||
Total Cost | $1,970,000 |
ii) Computation of Profit | Units | Price per unit | Amount($) |
Net Sales | 9506 | 256 | 24,33,536 |
Less: Cost of goods sold | 9506 | 199 | 18,91,694 |
(Cost per unit= 19,89,897 /10,000 = 199) | |||
Profit | 5,41,842 |
Working Notes: | |||
a) Total cost for a batch (including scrapped 1% during manufacturing) | |||
Particulars | Units | Cost per unit | Amount ($) |
Finished products of a batch | 10,000 | 197 | 19,70,000 |
Total cost for a batch (including scrapped 1% during manufacturing) | 10,101 | 197 | 19,89,897 |
(10,000/99% = 10,101) | |||
b) Computataion of Actual Finished goods units sold | |||
Particulars | Units | ||
Finished products in a batch | 10,000 | ||
Less: Unsold Finished products (3%) | 300 | ||
Finished products Sold | 9,700 | ||
Less: Sales Return (2% of 9,700) | 194 | ||
Net Sales units | 9,506 | ||
c) Compuatation of Selling price per unit | |||
Particulars | Amount($) | ||
Cost per unit | 197 | ||
Add: Corporate profit (30% on cost) | 59 | ||
Selling price per unit | 256 |
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