Bronxtec Itd manufactures a product called "PJD". Pertinent cost and revenue data relati the manufacture of this product is given below: Shs Selling price per unit 66 Variable production cost per unit 44 Variable selling cost per unit 4 Fixed production cost (total) Shs.200,000 Fixed selling and administrative cost (total) Shs.99,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. Calculate the break-even sales level in shillings and the number of units that the company would have to sell so as to make a profit
Shs.195, 000. 

2.A new machine, which is more efficient, is installed. This machine increases the fixed
production cost by 20% but reduces the variable production cost per unit by 30%. What is
the new break-even point in sales revenue?

Bronxtec Itd manufactures a product called "PJD". Pertinent cost and revenue data relating to
the manufacture of this product is given below:
Shs
Selling price per unit
66
Variable production cost per unit
44
Variable selling cost per unit
4
Fixed production cost (total)
Shs.200,000
Fixed selling and administrative cost (total)
Shs.99,000
Transcribed Image Text:Bronxtec Itd manufactures a product called "PJD". Pertinent cost and revenue data relating to the manufacture of this product is given below: Shs Selling price per unit 66 Variable production cost per unit 44 Variable selling cost per unit 4 Fixed production cost (total) Shs.200,000 Fixed selling and administrative cost (total) Shs.99,000
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