# how to get an answer for an accounting problem

will a cost that says per unit or activity will it always be a variable cost

 mazharpat Posts: 3, Reputation: 1 New Member #2 Dec 9, 2012, 11:21 PM
Usha Company produces three consumer products : P, Q and R. The management of the
company wants to determine the most profitable mix. The cost accountant has supplied the following
data.
Usha Company : Sales and Cost Data
Description Product Total
P Q R
Material Cost per unit
Quantity (Kg) 1.0 1.2 1.4
Rate per Kg (Rs) 50 50 50
Cost per unit (Rs) 50 60 70
Labour Cost per unit 30 90 90
Variable Overheads per unit 15 10 25
Current Sales (Units ,000) 100 50 60 210
Projected Sales (Units ,000) 109 55 125 289
Selling Price per unit (Rs) 150 200 270
Raw material used by the firm is in short supply and the firm can expect a maximum supply of 350
lakh kg for next year. Is the company’s projected sales mix most profitable or can it be changed for
the better?
 mazharpat Posts: 3, Reputation: 1 New Member #3 Dec 9, 2012, 11:26 PM
A ship-owner agreed to carry to cargo of sugar belonging to A from Constanza to Busrah. He knew
That there was a sugar market in Busrah and that A was a sugar merchant, but did not know that he
Intended to sell the cargo, immediately on its arrival. Owning to Shipment’s default, the voyage was
Delayed and sugar fetched a lower price than it would have done had it arrived on time. A claimed
Compensation for the full loss suffered by him because of the delay. Give your decision. Explain
Briefly?

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