New Madras Plastics Corporation

Abstract

The accountant believes that one of the products, twenty- litre grease container, does not fetch a price adequate to cover its costs. With the anticipated fall in volume she expects the unit cost to rise even higher. The issue requires understanding of relevant costs, cost-volume- profit relationship and contribution- based pricing. Owing to the inaccurate accounting of waste recycling, here even marginal costing would show a negative contribution. A thorough understanding of waste recycling is necessary for obtaining a proper answer.