Kindly solve properly PROBLEM-01Snowhite Ltd makes readymade shirts (of one male size). Revenue and cost data relating to the coming years are given below:Sales (9,000 shirts @ Tk. 100.00 per shirt)Tk. 9,00,000.00Cost of sales6.40,000.002,60,000.00Gross profitSelling and administrative expenses1.50,000.001,10,000.00IncomeThe firm has a capacity to make 10,000 shirts per year. The fixed costs included in the cost of goods sold are Tk. 1,00.000.00 The only variable selling, general andadministrative expenses are: 4 per cent sales commission and Tk. 2.00 per shirt paid to the designer.A chain store manager has approached the sales manager of Snowhite Ltd offering to purchase 1,000 shirts at Tk. 70.00 pr shirt. The sales manager believes thataccepting this offer would result in a loss because the average cost of a shirt is higher than Tk. 70.00. He feels that a loss would still result, even if sales commissionwould not be paid on the sales order. The designer has agreed to waive 50 per cent of his fee on any number of shirts sold to such a store.Tender you advice to the sales manager of Snowhite Ltd.Suppose that the order was for 2,500 instead of 1,000 shirts, what would be your advice?(iii)Assuming the same facts as in part lid, what is the lowest price that the firm would accept and still earn Tk. 1,10,000.00

The income statement of Snowhite Ltd. is given to us. It deals in readymade shirts for men. The…

(0) Tender you advice to the sales manager of Snowhite Ltd. (ii) Suppose that the order was for 2,500 instead of 1,000 shirts, what would be your advice? Assuming the same facts as in part lid, what is the lowest price that the firm would accept and still earn Tk. 1,10,000.00 (iii)

(0) Tender you advice to the sales manager of Snowhite Ltd. (ii) Suppose that the order was for 2,500 instead of 1,000 shirts, what would be your advice? Assuming the same facts as in part lid, what is the lowest price that the firm would accept and still earn Tk. 1,10,000.00 (iii)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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