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Each of the Big, Small and Medium cost is categorized by the manager into Red, Yellow, Green and Violet costs. Breakdown of the additional costs under these headings is shown in the table below:
Red, Yellow, Green and Violet costs are allocated to different retail formats. These costs are apportioned in the ratio of number of units consumed by each retail format. The number of units consumed by each retail format is given in the table below:
What is the profit/loss from "online" sales? (Use data from previous question if needed)
Sales from online = 50% of total sales = 50% of 60000 = 30000
Initial costs for online = 50% of total initial costs (Initial cost is allocated in ratio of sales)
= 50% of 39000 = 19500
Additional costs = Red + Yellow + Green + Violet for online) ....(1)
Total red costs = 5500
Red costs for online = 5500*(200/275) = 4000
Similarly,
Yellow costs for online = 3100*(52/100) = 1612
Green costs for online = 4800*(50/80) = 3000
Violets costs for online = 2400*(50/80) = 1500
Addition costs for online = 4000+1612+3000+1500 = 10112 From (1)
Profit = Sales - Initial costs - Additional costs = 30000-19500- 10112 = 388
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