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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
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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
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