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CAF-3 / Past Paper / Hope Limited Autumn 2015.
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Required:
(a) Calculate the number of units to be sold to maintain the current profit if the sales price remains at Rs. 1,600 and the 15% wage increase goes into effect.
(b) management believes that an additional investment of Rs. 760,000 in machinery (to be depreciated at 10% annually) will increase total capacity by 25%. Determine the selling price in order to earn a profit of Rs. 2 million assuming that all units produced at increased capacity can be sold and that the wage increase goes into effect.
(a) Calculate the number of units to be sold to maintain the current profit if the sales price remains at Rs. 1,600 and the 15% wage increase goes into effect.
(b) management believes that an additional investment of Rs. 760,000 in machinery (to be depreciated at 10% annually) will increase total capacity by 25%. Determine the selling price in order to earn a profit of Rs. 2 million assuming that all units produced at increased capacity can be sold and that the wage increase goes into effect.
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