At present the selling price of the Sandals is £5.75 and it incurs the following variable costs: The fixed costs of production are £180,000 and the company currently sells 90,000 units. Direct Labour £1.35 Direct Materials £1.75 Other Direct costs £0.40 Calculate the break-even point (in units and revenues) Calculate the profit made on sales of 90,000 units.

At present the selling price of the Sandals is £5.75 and it incurs the following variable costs: The fixed costs of production are £180,000 and the company currently sells 90,000 units. Direct Labour £1.35 Direct Materials £1.75 Other Direct costs £0.40 Calculate the break-even point (in units and revenues) Calculate the profit made on sales of 90,000 units.

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Description: At present the selling price of the Sandals is £5.75 and it incurs the following variable costs: The fixed costs of production are £180,000 and the company currently sells 90,000 units. Direct Labour £1.35 Direct Materials £1.75 Other Direct costs £

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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