CellPeak produces shelving units. The variable cost of each shelving unit comprises of direct materials of $21, direct labor of $10, packaging costs of $7 and variable overheads of $2. Cell Peak has fixed overheads of $259124 and sells its shelving units for $75 each. Current sales are 25,000 shelving units per annum. What profit would Cell Peak make if the company sold 18,000 shelving units?

CellPeak produces shelving units. The variable cost of each shelving unit comprises of direct materials of $21, direct labor of $10, packaging costs of $7 and variable overheads of $2. Cell Peak has fixed overheads of $259124 and sells its shelving units for $75 each. Current sales are 25,000 shelving units per annum. What profit would Cell Peak make if the company sold 18,000 shelving units?

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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