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
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
Problem 1PS
Related questions
Question
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?
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