A cabinet manufacturing company has started its operations by July, ist. The following cost items have been determined until the end of December: (a) Raw material #1 -> unit cost is 20 $/m2 and 6 m2 is required per cabinet; Raw material #2 -> unit cost is 40 $/m2 and 4 m2 is required per cabinet. (b) Spare material (such as screw, lock, nail etc.) -> unit cost is 70 $ per cabinet. (c) Direct labor costs -> 150 $ per cabinet. (d) Foreman and supervisor cost -> 100.000 $ monthly. (e) Machinery depreciation -> 120.000 $ monthly. (f) Administrative costs of production -> 140.000 $ monthly. Suppose that the company has produced 2.000 cabinets during the period. What would be the unit cost for these cabinets? Suppose that the company has sold all of its cabinets at a price of 1.800 $.| What is the gross profit? What is the breakeven number of units?

A cabinet manufacturing company has started its operations by July, ist. The following cost items have been determined until the end of December: (a) Raw material #1 -> unit cost is 20 $/m2 and 6 m2 is required per cabinet; Raw material #2 -> unit cost is 40 $/m2 and 4 m2 is required per cabinet. (b) Spare material (such as screw, lock, nail etc.) -> unit cost is 70 $ per cabinet. (c) Direct labor costs -> 150 $ per cabinet. (d) Foreman and supervisor cost -> 100.000 $ monthly. (e) Machinery depreciation -> 120.000 $ monthly. (f) Administrative costs of production -> 140.000 $ monthly. Suppose that the company has produced 2.000 cabinets during the period. What would be the unit cost for these cabinets? Suppose that the company has sold all of its cabinets at a price of 1.800 $.| What is the gross profit? What is the breakeven number of units?

Name: A cabinet manufacturing company has started its operations by July, 1
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Description: A cabinet manufacturing company has started its operations by July, 1st. The following cost itemshave been determined until the end of December: (a) Raw material #1 -> unit cost is 20 $/m2 and 6m2 is required per cabinet; Raw material #2 -> unit cos

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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