Transfer Pricing Page No 7.30 Of PM. How to come 1,50,000 mtr at 80% level and 2,50,000 at 100 % level
2 Replies
Ravi SADhiyan
(Practice)
(4510 Points)
Replied 28 August 2019
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AMRITA SINGH
(KOLKATA)
(419 Points)
Replied 28 August 2019
500000 mtr is total production capacity of textile. out of which 30% it sells to process department which means 150000. and 50% to outside. total 400000 mtrs sold by textile department. 20% of production capacity is untilised.
at 100 % capacity utilisation 50% for outsider and 30%+20% extra for process department i.e 150000+ 100000= 250000 mtr
at 80% capacity textile department is selling only 30% of 500000
at 100% capacity textile department is selling 50% of 500000
at 100 % capacity utilisation 50% for outsider and 30%+20% extra for process department i.e 150000+ 100000= 250000 mtr
at 80% capacity textile department is selling only 30% of 500000
at 100% capacity textile department is selling 50% of 500000
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