6. The standard costs and revenues of Log Co's only product are as follows: $ per unit Sales price Direct materials Direct labour Variable production overhead Fixed production overhead Profit 60 12 3 15 15 15 Fixed overheads are absorbed on budgeted production and sales of 10,000 units per year. Sales staff receive a sales commission of 5% of sales revenue. What is Log Co's margin of safety (to the nearest whole %)?

6. The standard costs and revenues of Log Co's only product are as follows: $ per unit Sales price Direct materials Direct labour Variable production overhead Fixed production overhead Profit 60 12 3 15 15 15 Fixed overheads are absorbed on budgeted production and sales of 10,000 units per year. Sales staff receive a sales commission of 5% of sales revenue. What is Log Co's margin of safety (to the nearest whole %)?

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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Question

6. The standard costs and revenues of Log Co's only product
are as follows:
$ per unit
Sales price
Direct materials
Direct labour
Variable production overhead
Fixed production overhead
Profit
60
12
3
15
15
15
Fixed overheads are absorbed on budgeted production and
sales of 10,000 units per year. Sales staff receive a sales
commission of 5% of sales revenue.
What is Log Co's margin of safety (to the nearest whole %)?

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