Example Given all the following costs for a consulting firm: C= RM2,024,000, c, = RM62/service hour, p = RM85.56/hour %3D Maximum output = 160,000 hours/year %3D Determine: a) Breakpoint in service hours and in % of capacity b) % reduction in BEP if Cfis 10% down; if c, 10% down; if both 10% dot p is increased by 10%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Given all the following costs for a consulting firm:
C;= RM2,024,000, c, = RM62/service hour, p = RM85.56/hour
Maximum output = 160,000 hours/year
%3D
Determine:
a) Breakpoint in service hours and in % of capacity
b) % reduction in BEP if Cfis 10% down; if c, 10% down; if both 10% dow
is increased by 10%
Transcribed Image Text:Example Given all the following costs for a consulting firm: C;= RM2,024,000, c, = RM62/service hour, p = RM85.56/hour Maximum output = 160,000 hours/year %3D Determine: a) Breakpoint in service hours and in % of capacity b) % reduction in BEP if Cfis 10% down; if c, 10% down; if both 10% dow is increased by 10%
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