EXTERNAL PRICING外部定价.docVIP

PROBLEMS ON PRICING DECISIONS EXTERNAL PRICING P – 1. The ABC Co. Ltd. provides the following information to you for output of 1,000 units of product. Variable Costs: Manufacturing Rs.200,000 Selling and Administrative 50,000 Total Variable Cost 250,000 Fixed Costs: Manufacturing 150,000 Selling Administrative 100,000 Total Fixed Cost 250,000 Total Cost 500,000 The company required 20% return on its investment of Rs. 300,000 Required: Required Mark up % to earn required return on investment. Selling price per unit. Income statement under absorption costing system. P – 2. A manufacturing company has an installed capacity of 150,000 units per annum. The cost structure of products manufactured is as under. Variable Manufacturing Costs per unit – Materials – Re.1 Labour – Re. 1 Overhead – Rs. 0.5 Manufacturing Semi–variable overhead is Rs. 50,000 per annum at 60% level of capacity which increases Rs. 10,000 per annum for increase in every 10% of capacity utilization. Fixed overhead Rs. 150,000 per annum. The company is planning to have return of 25% on its average investment. Required: Mark Up % to earn required return on average investment of Rs, 500,000 at 75% Capacity Level and Rs. 600,000 at 80% Capacity Level. Price of the product at 75% and 80% level of activity. Income statement under absorption costing. Price quotation sheet. P – 3. The following information is provided to you. Normal Capacity – 50,000 units Production and Sales – 45,000 units Variable cost per unit: Materials cost Rs.10 Labour Cost Rs 5 Selling Administrative Cost Rs. 1 Fixed Costs: Manufacturing overhead Rs. 50,000 Selling Administrative cost Rs. 30,000 The firm required Rs. 500,000 as initial investment and expect 20% return on investment. Required: Mark up % on variable costs. Selling price per unit. Income statement for 45,000 units P – 4. The Edmunt Company and the Elelamp Company both make television sets. The Edmunt Company purchases most of the parts a