Dear Freinds,
Please refer the attached xls file. This is what according to me the answer should be.
May I have your comments/correct solution (if this one seems to be erroneos)
Thanks in advance.
i have calculated exactly what u have done thanks for sharing.
Could we share other answers s well
Answer is Rs. 16,00,000 & ROI is 33.33%
I considered the Semi-variable expenses on average annual capacity utilisation and hence considered 75000+5000 = 80,000. Rest all answer was as given in the file. Hence my profit was at 16 lac.
I think my answer is also correct. In the question the semi-variable cost is given on annual basis and it is given that "Semivariable overhead Rs. 75000 per annum incurred upto 70% average annual capacity utilization. Thereafter it increases at Rs. 5000 per annum for every 10% average annual capacity increase".
CAclubindia
