Expected sales Variable costs 10,000 units @ £8 £5 per unit £21,000 Fixed costs Assume Sales volume = No of products produced 1) Calculate Contribution margin per unit. 2) Calculate Break-even point in units? 3) Sales at break-even point? Express the idea of the figure. 4) Prepare Income Statement applying marginal reporting.
Expected sales Variable costs 10,000 units @ £8 £5 per unit £21,000 Fixed costs Assume Sales volume = No of products produced 1) Calculate Contribution margin per unit. 2) Calculate Break-even point in units? 3) Sales at break-even point? Express the idea of the figure. 4) Prepare Income Statement applying marginal reporting.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CVP & BEP-Example 1
Expected sales
Variable costs
10,000 units @ £8
£5 per unit
£21,000
Fixed costs
Assume Sales volume = No of products produced
1) Calculate Contribution margin per unit.
2) Calculate Break-even point in units?
3) Sales at break-even point? Express the idea of the figure.
4) Prepare Income Statement applying marginal reporting.
(
8"
Transcribed Image Text:I only need the awnser for question 3 and 4
CVP & BEP-Example 1
Expected sales
Variable costs
10,000 units @ £8
£5 per unit
£21,000
Fixed costs
Assume Sales volume = No of products produced
1) Calculate Contribution margin per unit.
2) Calculate Break-even point in units?
3) Sales at break-even point? Express the idea of the figure.
4) Prepare Income Statement applying marginal reporting.
(
8
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