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Edwards & co manaufactures teddy bears. The company's bears are in demand all year round and in the next financial year the sales manager plans to sell 12,00 teddies. The trainees management accountant has provided the following cost information for 1 unit of teddy bear. The selling is £10.00 and the variable cost will consist of direct, materials £1 .00 per unit, direct labout £5.00 per unit. The fixed cost for the year are expected to be £32,000. Required: Calculate contribution per unit The breakeven point in units The breakeven points in terms of sales value The level of sales quanity to reach a target profit of £20,000

Edwards & co manaufactures teddy bears. The company's bears are in demand all year round and in the next financial year the sales manager plans to sell 12,00 teddies. The trainees management accountant has provided the following cost information for 1 unit of teddy bear. The selling is £10.00 and the variable cost will consist of direct, materials £1 .00 per unit, direct labout £5.00 per unit. The fixed cost for the year are expected to be £32,000. Required: Calculate contribution per unit The breakeven point in units The breakeven points in terms of sales value The level of sales quanity to reach a target profit of £20,000

FINANCIAL ACCOUNTING
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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Edwards & co manaufactures teddy bears. The company's bears are in demand all year round and in the next financial year the sales manager plans to sell 12,00 teddies. The trainees management accountant has provided the following cost information for 1 unit of teddy bear. The selling is £10.00 and the variable cost will consist of direct, materials £1 .00 per unit, direct labout £5.00 per unit. The fixed cost for the year are expected to be £32,000. Required: Calculate contribution per unit The breakeven point in units The breakeven points in terms of sales value The level of sales quanity to reach a target profit of £20,000.
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