2. A company manufactures and sells a single product which has the following cost andselling price structure.ParticularTk/unitTk/unitSelling PriceDirect Material12022Direct LaborVariable Overhead3614Fixed Overhead128436Profit per unitThe fixed overhead absorption rate is based on the normal capacity of 2,000 units permonth. Assume that the same amount is spent each month on fixed overheads.Budgeted sales for next month are 2,200 units.You are required to calculate:Breakeven point, in sales units per month.ii.The margin of safety and interpret the result.iii.The sales required to achieve profit of Tk. 96,000 in a month.iv.Degree of operating leverage.V.Estimated percentage increase and decrease in net operating income of a 10%increase in sales and a 5% decrease in sales.

Name: 2. A company manufactures and sells a single product which has the fo
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Description: 2. A company manufactures and sells a single product which has the following cost andselling price structure.ParticularTk/unitTk/unitSelling PriceDirect Material12022Direct LaborVariable Overhead3614Fixed Overhead128436Profit per unitThe fixed overh

The question is based on the concept of Cost Accounting.

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Accounting

A company manufactures and sells a single product which has the following cost and selling price structure. Particular Tk/unit Tk/unit Selling Price Direct Material Direct Labor Variable Overhead 120 22 36 14 Fixed Overhead 12 84 36 Profit per unit The fixed overhead absorption rate is based on the normal capacity of 2.000 units per

A company manufactures and sells a single product which has the following cost and selling price structure. Particular Tk/unit Tk/unit Selling Price Direct Material Direct Labor Variable Overhead 120 22 36 14 Fixed Overhead 12 84 36 Profit per unit The fixed overhead absorption rate is based on the normal capacity of 2.000 units per

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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