Homework Help is Here – Start Your Trial Now!
Business
Accounting
4. If the marginal cost is $6.50 per unit, fixed costs to $70 000 per annum, and the selling price is $10, what will be the number of units required to maintain a profit of $20 000? a. 18 714 units b. 20 714 units С. 27 714 units d. 25 714 units

4. If the marginal cost is $6.50 per unit, fixed costs to $70 000 per annum, and the selling price is $10, what will be the number of units required to maintain a profit of $20 000? a. 18 714 units b. 20 714 units С. 27 714 units d. 25 714 units

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please help with multiple choice questions.

4. If the marginal cost is $6.50 per unit, fixed costs to $70 000 per annum, and the selling price is $10, what will be the number of units required to maintain a profit of $20 000? а. 18 714 units b. 20 714 units С. 27 714 units d. 25 714 units 5. What is the value of the total cost? A company makes a single product with a total capacity of 400 000 litres per annum. Cost and sales data are as follows: Selling price Marginal cost Fixed costs $1 per litre $0.50 per litre $100 000 a. $250 000 b. $287 000 C. $185 000 d. $88 900
Transcribed Image Text:4. If the marginal cost is $6.50 per unit, fixed costs to $70 000 per annum, and the selling price is $10, what will be the number of units required to maintain a profit of $20 000? а. 18 714 units b. 20 714 units С. 27 714 units d. 25 714 units 5. What is the value of the total cost? A company makes a single product with a total capacity of 400 000 litres per annum. Cost and sales data are as follows: Selling price Marginal cost Fixed costs $1 per litre $0.50 per litre $100 000 a. $250 000 b. $287 000 C. $185 000 d. $88 900
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Inventory Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS