Deb is setting up a business printing newspapers and magazines. The following standard cost information is available: Newspapers Magazines Selling price 3.00 4.00 Direct materials: - Paper - Ink 0.4 0.5 0.2 0.3 Direct Labour 0.6 0.8 Variable overhead 0.3 0.45 Fixed overhead 0.9 0.8 Profit per unit 0.6 1.15 Budgeted production 1,000 units per week 3,000 units per month Deb is going to start by only printing newspapers. 1 How many units would need to be sold to breakeven? units
Deb is setting up a business printing newspapers and magazines. The following standard cost information is available: Newspapers Magazines Selling price 3.00 4.00 Direct materials: - Paper - Ink 0.4 0.5 0.2 0.3 Direct Labour 0.6 0.8 Variable overhead 0.3 0.45 Fixed overhead 0.9 0.8 Profit per unit 0.6 1.15 Budgeted production 1,000 units per week 3,000 units per month Deb is going to start by only printing newspapers. 1 How many units would need to be sold to breakeven? units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Deb is setting up a business printing newspapers and magazines. The following standard
cost information is available:
Newspapers
Magazines
Selling price
3.00
4.00
Direct materials:
- Paper
0.4
0.5
- Ink
0.2
0.3
Direct Labour
0.6
0.8
Variable overhead
0.3
0.45
Fixed overhead
0.9
0.8
Profit per unit
0.6
1.15
Budgeted production
1,000 units per week
3,000 units per month
Deb is going to start by only printing newspapers.
1
How many units would need to be sold to breakeven?
units
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