a. Paulet sauté maringo Rs 50 b. Chicken a la kieve Rs 70 c. Coffee Rs 10. b) List the factors that must be considered when deciding on the selling price. Answer:- a) Using the formula:- Selling Price = Total Cost x (1 + Mark-Up Percent) i. Paulet sauté meringo Selling price = 50 x (1 +60%) =50 X 1.6 = Rs 80 ii. Chicken a la kieve selling price = 70X (1+ 70%) = 70 X 1.7 =Rs 119 iii. Coffee Selling price
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demand for cars‚ but has also led to adoption of price cutting strategies by various car manufactures. The industry indicators predict that the economy is gradually slipping into recession. Exhibit 1 Balance sheet as at March 31‚200 x (Amount in Rs. Crore) Source of Funds Share capital 350 Reserves and
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the following two mutually exclusive projects. The net cash flows are given below: NET CASH FLOWS years PROJECT A FROM PROJECT B 0 - Rs. 1‚00‚000 - Rs. 1‚00‚000/- 1 + Rs. 30‚000 + Rs. 15‚000/- 2 + Rs. 35‚000 + Rs. 17‚500/- 3 + Rs. 40‚000 + Rs. 20‚000/- 4 + Rs. 45‚000 + Rs. 22‚500/- 5 + Rs. 25‚000/- 6 + Rs. 27‚500/- 7 + Rs. 30‚000/- 8 + Rs. 32‚500/- If the desired rate of return is 10% which project should be chosen? 3. What are the levels of aggregation in forecasting for a manufacturing
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slashes hatchback‚ sedan prices by Rs 29‚000-50‚000 NEW DELHI: Tata MotorsBSE 0.74 % said it has cut prices of its hatchbacks and sedans by Rs 29‚000-50‚000 ($530-$910)‚ in a bid to lure customers to a market that is on course in the current fiscal year to post the first decline in annual sales in a decade. Tata Motors‚ however‚ raised prices of its sport-utility vehicles (SUVs) - the only bright spot in the country’scar market in recent months - by up to Rs 11‚000‚ the spokeswoman‚ who declined
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company advertises that it will pay a lumpsum of Rs 8000 at the end of 6 yrs to investors who deposit annually Rs 1000 for 6 yrs. What is the rate implicit in this offer? 2. You want to take a trip to the moon which costs Rs 10‚00‚000-the cost is expected to remain unchanged in nominal terms. You can save annually Rs 50000 to fulfil this desire. How long will you have to wait if your savings earn an interest of 12 percent p.a.? 3. Suppose a firm borrows Rs 10‚00‚000 at an interest rate of 15 percent
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Predatory Pricing This pricing strategy is followed with the intention to wipe out the competition Example: In the year 2003‚ LG and Samsung along with Reliance came up withRs. 500/- mobile scheme where both handsets along with connections were available for Rs. 500/-. This was something which revolutionized the mobile phone and telecom industry 3.Perceived value Pricing: In this case the pricing is done based on the customer‟s perception about the company and its product. Perceived value is made up
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tool annually at a price of Rs.80 per piece. The purchase price per machine tool to the firm is‚ however‚ Rs.65. The cost of carrying a machine tool is Rs.10 per year and the cost of placing an order is Rs.80. (a) What is the total cost associated with placing one‚ two‚ five‚ and ten orders per year? (b) What is the economic order quantity? 3. You plan to go abroad for higher studies after working for the next five years and understand that an amount of Rs.2‚000‚000 will be needed
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Sri Lankan Paint Industry By Roshan Attanayake Industry Overview Size of Sri Lankan paint market‚ - Rs. 15 billion in value - 30-35 million liters in volume. Comprises of 60 manufacturers. 06 big players controlling 97% of the market. CIC Lankem - Dulux / Akzo / Glidden - Robbialac Asian Paints - Royale / Permoglaze Causeway Silicon Coatings Macsons Lanka - Luxury / Kenlux - Nippolac - Multilac 1 Industry Overview Decorative and industrial paint segments contribute 85% and 15% respectively
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cost involved in Nihal’s Decision is Rs 680‚000/- Annual Income Forgone - Rs.600‚000/- Training Cost Incurred - Rs.180‚000/- Scholarship received - Rs. (100‚000/-) Opportunity cost - Rs.680‚ 000/- Meal cost is not an opportunity cost since he has to incur the cost irrespective of his decision. b) Annual opportunity cost to the country on training the athlete is Rs 100‚000/- 2. (a) Equilibrium Price Equilibrium Quantity (Refer Diagram No 01) =Rs.700/=200 units 1 Diagram No 01 1000
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Ratio Analysis Formulas 1) Financial ratios S.no | Ratio | Formula | Ideal ratio | comments | 1 | Current ratio | Current assetsCurrent liabilities | 2:1/1.33:1 | Indicates firm’s commitment to meet financial obligations.Avery heavy ratio is not desirable as it indicates less efficient use of funds | 2 | Quick ratio | Quick assetsCurrent liabilities | 1:1 | This ratio also indicates short term solvency of a firm | 3 | Debt –Equity ratios | long term debtequity | 1:2 | Indicates long
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