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furniture for garden centres. Set out below is the sales revenue and profit for 2021. Year Sales 2021 £372,424 Profit £150,268 In 2021 the business manufactured and sold 98,000 units and had fixed costs of £132,670. All other costs were variable. a. Calculate the selling price and variable cost per unit for 2021. (Answers should be to the nearest penny. Any figures used in further answers to this question should be rounded numbers.) Calculate the sales revenue level, both in units and money terms, at which the business broke even in 2021. (Answers for all breakeven questions should be rounded up to the next whole number or pound.) Bianca had considered spending an additional £12,200 on advertising in 2021. She predicted that such an additional investment would have increased the sales. and production volume in the year to 126,000 units at a better selling price of £4.10. She also predicted there would have been no other changes to her fixed costs for the year nor any changes to the variable cost per unit. i.If her predictions had proved correct, what would have been her new profit for the year? If her predictions had proved correct, what would have been her new breakeven point, in units, for the year? (Answers for all breakeven questions should be rounded up to the nearest whole number or pound.)

furniture for garden centres. Set out below is the sales revenue and profit for 2021. Year Sales 2021 £372,424 Profit £150,268 In 2021 the business manufactured and sold 98,000 units and had fixed costs of £132,670. All other costs were variable. a. Calculate the selling price and variable cost per unit for 2021. (Answers should be to the nearest penny. Any figures used in further answers to this question should be rounded numbers.) Calculate the sales revenue level, both in units and money terms, at which the business broke even in 2021. (Answers for all breakeven questions should be rounded up to the next whole number or pound.) Bianca had considered spending an additional £12,200 on advertising in 2021. She predicted that such an additional investment would have increased the sales. and production volume in the year to 126,000 units at a better selling price of £4.10. She also predicted there would have been no other changes to her fixed costs for the year nor any changes to the variable cost per unit. i.If her predictions had proved correct, what would have been her new profit for the year? If her predictions had proved correct, what would have been her new breakeven point, in units, for the year? (Answers for all breakeven questions should be rounded up to the nearest whole number or pound.)

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...
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Bianca, a sole trader, owns and manages a business which manufactures and sells one special type of garden furniture for garden centres. Set out below is the sales revenue and profit for 2021. Year 2021 Sales £372,424 Profit £150,268 In 2021 the business manufactured and sold 98,000 units and had fixed costs of £132,670. All other costs were variable. a. Calculate the selling price and variable cost per unit for 2021. (Answers should be to the nearest penny. Any figures used in further answers to this question should be rounded numbers.) Calculate the sales revenue level, both in units and money terms, at which the business broke even in 2021. (Answers for all breakeven questions should be rounded up to the next whole number or pound.) Bianca had considered spending an additional £12,200 on advertising in 2021. She predicted that such an additional investment would have increased the sales and production volume in the year to 126,000 units at a better selling price of £4.10. She also predicted there would have been no other changes to her fixed costs for the year nor any changes to the variable cost per unit. i.If her predictions had proved correct, what would have been her new profit for the year? If her predictions had proved correct, what would have been her new breakeven point, in units, for the year? (Answers for all breakeven questions should be rounded up to the nearest whole number or pound.)
Transcribed Image Text:Bianca, a sole trader, owns and manages a business which manufactures and sells one special type of garden furniture for garden centres. Set out below is the sales revenue and profit for 2021. Year 2021 Sales £372,424 Profit £150,268 In 2021 the business manufactured and sold 98,000 units and had fixed costs of £132,670. All other costs were variable. a. Calculate the selling price and variable cost per unit for 2021. (Answers should be to the nearest penny. Any figures used in further answers to this question should be rounded numbers.) Calculate the sales revenue level, both in units and money terms, at which the business broke even in 2021. (Answers for all breakeven questions should be rounded up to the next whole number or pound.) Bianca had considered spending an additional £12,200 on advertising in 2021. She predicted that such an additional investment would have increased the sales and production volume in the year to 126,000 units at a better selling price of £4.10. She also predicted there would have been no other changes to her fixed costs for the year nor any changes to the variable cost per unit. i.If her predictions had proved correct, what would have been her new profit for the year? If her predictions had proved correct, what would have been her new breakeven point, in units, for the year? (Answers for all breakeven questions should be rounded up to the nearest whole number or pound.)
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