Essay About Unit295390340Lessdirect Material7512090Lessdirect Labour And Labour Hour80100110Lessvariable Overheads407060 Contribution10010080

COMA AssignmentAnswer 1  Product XProduct YProduct Z Sale value per unit295390340lessDirect material7512090lessDirect labour @ Rs.20 per labour hour80100110lessVariable overheads407060 CONTRIBUTION10010080(Assumption: 50% of the total amount of Material is imported i.e the cost of imported and domestic raw materials would be same.)When imported material is the key/limiting factor,Calculation of Contribution per KG of imported Raw Materials Product XProduct YProduct ZDirect  Imported material(Rs.)50% of 7550% of 12050% of 9037.56045Cost of Imported Raw material per kg(Rs.)555Imported Raw material requiremnt(kg)7.5129CONTRIBUTION10010080Contribution per kg(Rs.)13.338.338.89It is clear that the firm enjoys greater contribution margin per kg use of Imported Raw material in case of product X than product Y & Z.When Capacity is the key/limiting factor,Calulation of Contribution per Labour Hour(Capacity) Product XProduct YProduct ZCONTRIBUTION10010080No of Labour Hours per Unit80/20100/20110/20455.5Contribution per labour hour(Rs.)252014.55