Apple Ltd makes and sells a single product, for which variable costs are follows: Direct materials £20 Direct labour £16 Variable production overhead £12 £48 The sales price is £60 per unit, and fixed costs per annum are £136,000. The company wishes to make a profit of £32,000 per annum. Required: Determine the sales required to achieve this profit
Apple Ltd makes and sells a single product, for which variable costs are follows: Direct materials £20 Direct labour £16 Variable production overhead £12 £48 The sales price is £60 per unit, and fixed costs per annum are £136,000. The company wishes to make a profit of £32,000 per annum. Required: Determine the sales required to achieve this profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
(d) Apple Ltd makes and sells a single product, for which variable costs are
follows:
Direct materials £20
Direct labour £16
Variable production
£48
The sales price is £60 per unit, and fixed costs per annum are £136,000. The
company wishes to make a profit of £32,000 per annum.
Required:
Determine the sales required to achieve this profit
Expert Solution
Step 1
Sales is the amount of revenue earned by an entity by selling the goods. It is the total revenue without deducting any costs or expenses.
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