SOM plc sells one product for which data for a budgeted period are givenbelow:Selling price per unitVariable cost per unitFixed cost per unit£904022Fixed costs are based on a budgeted level of activity of 5,000 units.Calculate the total costs of production of 5,000 units:A. £110,000B. £250,000C. £450,000D. £310,000.

Total cost = variable costs + fixed costs = (5000 units * £40) + (5000 units * £22) = £200,000 +…

elow: elling price per unit ariable cost per unit ixed cost per unit £ 90 40 22 ixed costs are based on a budgeted level of activity of 5,000 units. alculate the total costs of production of 5,000 units: £110,000 £250,000 £450,000 £310,000.

elow: elling price per unit ariable cost per unit ixed cost per unit £ 90 40 22 ixed costs are based on a budgeted level of activity of 5,000 units. alculate the total costs of production of 5,000 units: £110,000 £250,000 £450,000 £310,000.

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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