A defense contractor has been able to summarize its total annual fixed costs as RM 100,000 and the total variable cost per unit of production as RM 33. (i) If only 5,000 units is all that is expected to sell to the government this year, determine what should the per unit selling price be to make a 25% profit this year. If foreign sales of 3,000 units per year is to be added to the 5,000 units government contract above and a 25% profit is acceptable for this contractor again, determine what could be the new selling price per unit. (ii)

A defense contractor has been able to summarize its total annual fixed costs as RM 100,000 and the total variable cost per unit of production as RM 33. (i) If only 5,000 units is all that is expected to sell to the government this year, determine what should the per unit selling price be to make a 25% profit this year. If foreign sales of 3,000 units per year is to be added to the 5,000 units government contract above and a 25% profit is acceptable for this contractor again, determine what could be the new selling price per unit. (ii)

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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