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.

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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v.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAsslghmehtSesslohLocator=&lnprogress=lalse Update Target Profit Trailblazer Company sells a product for $155 per unit. The variable cost is $80 per unit, and fixed costs are $585,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $157,950. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $157,950 units
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