Carbondale Corporation is a manufacturer of converters sold on a private label basis to large discount chains. The company has capacity to produce 45,000 converters a year. Planned production for the current year is 20,000 units and involves working the plant for a single shift. An analysis of the company’s cost records reveals the following information for the 20,000 units production level: Variable manufacturing cost per unit: Ksh 8 Variable Selling and Administration costs per unit: Ksh2 Fixed manufacturing costs: Ksh60, 000 Fixed Selling and Administration costs: Ksh40, 000 Current selling price per unit: Ksh18 1.Determine the breakeven point in units and value 2.Plot the cost-volume-profit chart
Carbondale Corporation is a manufacturer of converters sold on a private label basis to large discount chains. The company has capacity to produce 45,000 converters a year. Planned production for the current year is 20,000 units and involves working the plant for a single shift. An analysis of the company’s cost records reveals the following information for the 20,000 units production level:
Variable manufacturing cost per unit: Ksh 8
Variable Selling and Administration costs per unit: Ksh2
Fixed
Fixed Selling and Administration costs: Ksh40, 000
Current selling price per unit: Ksh18
1.Determine the breakeven point in units and value
2.Plot the cost-volume-profit chart
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