Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs: Direct material __$5/kg Direct labor_$10/hour Total Manufacturing overhead ______________$30000 The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost). Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why. Form question one above considering all the manufacturing costs are fixed calculate the Breakeven point both in unit and quantity using the contribution and equation approach. How many units is the company expected to sell to make a before tax target profit $400,000. Will the result be different if we consider 30% tax? Evaluate sunk costs and fixed costs from the perspective of relevant information for decision making. Why is accounting called the language of business? Support with example The question I want to be answered number 2 which is 2. Form question one above considering all the manufacturing costs are fixed calculate the Breakeven point both in unit and quantity using the contribution and equation approach. How many units is the company expected to sell to make a before tax target profit $400,000. Will the result be different if we consider 30% tax?

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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Unity University

Final Exam for Management And Financial Accounting

Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs:

Direct material ______$5/kg
Direct labor_________$10/hour
Total Manufacturing overhead __________________$30000

The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost).

Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why.
Form question one above considering all the manufacturing costs are fixed calculate the Breakeven point both in unit and quantity using the contribution and equation approach. How many units is the company expected to sell to make a before tax target profit $400,000. Will the result be different if we consider 30% tax?
Evaluate sunk costs and fixed costs from the perspective of relevant information for decision making.
Why is accounting called the language of business? Support with example

The question I want to be answered number 2 which is

2. Form question one above considering all the manufacturing costs are fixed calculate the Breakeven point both in unit and quantity using the contribution and equation approach. How many units is the company expected to sell to make a before tax target profit $400,000. Will the result be different if we consider 30% tax?

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