A company makes a single product with a sales price of £12 and a variable cost of £9. Fixed costs are £120,000 per month. The Company budget to sell 90,000 units of the product a month.CalculateWhat the budgeted profit per monthWhat number of units will need to be sold to achieve a profit of £20,000 p.a?What level of sales will achieve a profit of £20,000 p.a?If the taxation rate is 40% how many units will need to be sold to make a profit after tax is £20,000 p.a.?Because of increasing costs the marginal cost is expected to fall to £6.50 per unit and fixed costs to £70,000 p.a. If the selling price cannot be increased what will be the number of units required to maintain a profit of £20,000 p.a.? (ignore tax)

Required sales in Unit = Required sales = (Fixed cost +Desired profit)/Contribution per unit…

A company makes a single product with a sales price of £12 and a variable cost of £9. Fixed costs are £120,000 per month. The Company budget to sell 90,000 units of the product a month. Calculate What the budgeted profit per month What number of units will need to be sold to achieve a profit of £20,000 p.a? What level of sales will achieve a profit of £20,000 p.a?

A company makes a single product with a sales price of £12 and a variable cost of £9. Fixed costs are £120,000 per month. The Company budget to sell 90,000 units of the product a month. Calculate What the budgeted profit per month What number of units will need to be sold to achieve a profit of £20,000 p.a? What level of sales will achieve a profit of £20,000 p.a?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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