A factory producing one product. The fixed cost for the year 2021-2022 is 60000$. The estimated sales are 2000005. The variable cost per unit is 15S. If each unit is sold at 100$. Find out 1. B. E.P 2. The profit at a turn-over of 30000 units 3. Margin of safety 4. If a profit target is 500000S, compute the turn over required. Also construct the break-even chart and show the details on it.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
icon
Related questions
Question
2. A factory producing one product. The fixed cost for the year 2021-2022 is 60000$. The estimated sales are 2000005. The variable cost per unit is 15S. If each unit is sold at 100$. Find out 1. B. E.P 2. The profit at a turn-over of 30000 units 3. Margin of safety 4. If a profit target is 500000S, compute the turn over required. Also construct the break-even chart and show the details on it.
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning