Bock Ltd. makes 200 wooden kitchen chairs every month and sells them for GHe50 each. Fixed month overheads are GHe3.00 and thestandard cost of one chair is as follows: GHe Materials 15 Direct labour 8 Variable overheads 7 Required: 1.Calculate for one month 2. The variable cost of one chair b. the breaker en point 3. The profit if 200 chairs are sold 4. The number of chairs sold to give profit of GHe4,000

Bock Ltd. makes 200 wooden kitchen chairs every month and sells them for GHe50 each. Fixed month overheads are GHe3.00 and thestandard cost of one chair is as follows: GHe Materials 15 Direct labour 8 Variable overheads 7 Required: 1.Calculate for one month 2. The variable cost of one chair b. the breaker en point 3. The profit if 200 chairs are sold 4. The number of chairs sold to give profit of GHe4,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7MC: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and...

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QUESTION 1

Bock Ltd. makes 200 wooden kitchen chairs every month and sells them for GHe50 each. Fixed month overheads are GHe3.00 and thestandard cost of one chair is as follows:

GHe

Materials	15
Direct labour	8
Variable overheads	7

Required:

1.Calculate for one month

2. The variable cost of one chair b. the breaker en point

3. The profit if 200 chairs are sold

4. The number of chairs sold to give profit of GHe4,000

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