Francois French manufactures cheese, which he normally sells at €20/kg, on which sales commission of 5% is paid. Plant capacity is 7,500 kg/month, Income tax is levied at 30. Fixed costs Costs per kg. Plant depreciation €8,000 Direct materials €4 Other plant costs 15,000 Direct labor 2 Corporate salaries 10,000 Var. factory O/H Advertising 3,000 The number of kilograms to sell to break-even is: 3,273 3,600 3,000 2.300 none of the above

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Francois French manufactures cheese, which he normally sells at €20/kg. on which sales commission of 5%
is paid. Plant capacity is 7,500 kg/month. Income tax is levied at 30%.
Fixed costs
Costs per kg.
Plant depreciation
€8,000
Direct materials
€4
Other plant costs
15,000
Direct labor
2
Corporate salaries
10,000
Var. factory O/H
Advertising
3,000
The number of kilograms to sell to break-even is:
3,273
3,600
3,000
2,300
none of the above
Transcribed Image Text:Francois French manufactures cheese, which he normally sells at €20/kg. on which sales commission of 5% is paid. Plant capacity is 7,500 kg/month. Income tax is levied at 30%. Fixed costs Costs per kg. Plant depreciation €8,000 Direct materials €4 Other plant costs 15,000 Direct labor 2 Corporate salaries 10,000 Var. factory O/H Advertising 3,000 The number of kilograms to sell to break-even is: 3,273 3,600 3,000 2,300 none of the above
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