(a) A company manufactures a single product which has variable cost of £40 per unit. The contribution to sales ratio is 45%. Monthly fixed costs are £198,000. What is the breakeven point in pounds and in units? (b) John makes and sells a product which has a variable cost of £60 and sells for £80 per unit. Budgeted fixed costs are £140,000 and budgeted sales are 16000 units. Determine the sales required to achieve this profit What is the breakeven point and margin of safety? (c) TLF Ltd wishes to sell 28,000 units of its product, which has a variable cost of £30 to make and sell. Fixed costs are £94,000 and required profit is £26,000. Calculate the sales price per unit (d) Apple Ltd makes and sells a single product, for which variable costs are follows:Direct materials $20Direct labour $16Variable production overhead $12 $48The sales price is £60 per unit, and fixed costs per annum are £136,000. The company wishes to make a profit of £32,000 per annum.
(a) A company manufactures a single product which has variable cost of £40 per unit. The contribution to sales ratio is 45%. Monthly fixed costs are £198,000.
- What is the breakeven point in pounds and in units?
(b) John makes and sells a product which has a variable cost of £60 and sells for £80 per unit. Budgeted fixed costs are £140,000 and budgeted sales are 16000 units.
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Determine the sales required to achieve this profit
- What is the breakeven point and margin of safety?
(c) TLF Ltd wishes to sell 28,000 units of its product, which has a variable cost of £30 to make and sell. Fixed costs are £94,000 and required profit is £26,000.
- Calculate the sales price per unit
(d) Apple Ltd makes and sells a single product, for which variable costs are follows:
Direct materials $20
Direct labour $16
Variable production
$48
The sales price is £60 per unit, and fixed costs per annum are £136,000. The company wishes to make a profit of £32,000 per annum.
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