Chord Ltd manufactures different types of guitars. Its best seller is the Atlantica. Chord Ltd plans to produce 600 Altlanticas in theupcoming period. Material costs are £120 per guitar. Each guitar uses 4Kg of material. The labour rate is £18.50 per hour and eachguitar takes 3.5 hours to manufacture. Variable overheads are £20 per unit. Fixed overheads attributed to the manufacturing of allAtlanticas are expected to be £60,000 and absorbed on a per unit basis. Each Atlantica will sell for £350.What is the expected margin of safety in units?A) 2,400 unitsB414 unitsC) 172 units186 units

Margin of Safety means the Units that will be sold above the Break even Sales. Break Even Sales…

Answered: Chord Ltd manufactures different types…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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RK Co. sells snowboards. Each snowboard requires direct materials for $140, direct labor for $55, and variable overhead of $64. The company expects fixed overhead costs of $673,000 and fixed selling and administrative costs of $160,000 for the next year. It expects to produce and sell 11,900 snowboards in the next year. What will be the selling price per unit if RK uses a mark-up of 17% of the total cost?
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