A company produces a single product in three sizes, A, B and C. Prepare a statement showing the selling and distribution expenses apportioned over three sizes on the basis indicated and express the total appropriated to each size as,
I] Cost per unit sold II] A percentage of sales turnover and III] Cost per cubic meter of product sold.
The expenses and basis of apportionment are as follows,
|
Expenses |
Amount Rs. |
Basis of Apportionment |
|
Sales |
10,000 |
Direct charge |
|
Sales commission |
6,000 |
Sales turnover |
|
Sales office expenses |
2,096 |
Number of orders |
|
Advertising-specific |
22,000 |
Direct charge |
|
Advertising- general |
5,000 |
Sales turnover |
|
Packing |
3,000 |
Size of product |
|
Delivery expenses |
4,000 |
Size of product |
|
Warehouse expenses |
1,000 |
Size of product |
|
Credit collection expenses |
1,296 |
Number of orders |
|
Total |
54,392 |
Data relating to the three sizes:
|
Particulars |
Total |
Size A |
Size B |
Size C |
|
Number of salesmen, all paid same salary |
10 |
4 |
5 |
1 |
|
Number of orders |
1,600 |
700 |
800 |
100 |
|
% of specific advertising |
100 |
30 |
40 |
30 |
|
Number of units sold |
8,240 |
3,440 |
3,200 |
1,600 |
|
Sales turnover |
Rs. 2,00,000 |
Rs. 58,000 |
Rs. 80,000 |
Rs. 62,000 |
|
Capacity in cubic m. per unit |
5 |
8 |
17 |
