Dennis Ltd makes a single product, the Flair. Over the next period, period 1, DennisLtd plans to sell 4,200 Flairs. Revenue and cost data for period 1 are shown below:Sales (4,200 units)MaterialsVariable labour costsVariable overheadsFixed overheadsProfit£483,000140,000170,00082,70086,0004,300 Calculate how many units would need to be sold to make £7,500 pCalculate how much profit would be made if 5,000 units were sold

Marginal Costing :— Marginal Costing is the Cost Management Technique. Under marginal Costing,…

Answered: Calculate how many units would need to…

Calculate how many units would need to be sold to make £7,500 p Calculate how much profit would be made if 5,000 units were sold

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Dennis Ltd makes a single product, the Flair. Over the next period, period 1, Dennis
Ltd plans to sell 4,200 Flairs. Revenue and cost data for period 1 are shown below:
Sales (4,200 units)
Materials
Variable labour costs
Variable overheads
Fixed overheads
Profit
£
483,000
140,000
170,000
82,700
86,000
4,300

Calculate how many units would need to be sold to make £7,500 p
Calculate how much profit would be made if 5,000 units were sold

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