John makes and sells a product which has a variable cost of £60 and sells for £80 per unit. Budgeted fixed cost are £140,000 and budgeted sales are 16000 units. Please Calculate breakeven point and margin of safety. Thank you
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John makes and sells a product which has a variable cost of £60 and sells for £80 per unit. Budgeted fixed cost are £140,000 and budgeted sales are 16000 units.
Please Calculate breakeven point and margin of safety.
Thank you
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- Rachel Ltd. manufactures chopping boards. Each unit sells for €15. Variable costs are €5.50 per unit. Fixed costs are budgeted at €87,903.5 for the forthcoming financial year and the company expects to sell 15,000 units. What is the margin of safety (to the nearest €)? a) €54,597 b) €62,520 c) €138,795 d) €86,205I need help with this solution and accountingyou have to create your own product to be sold , list of variable and fixed cost , BEP analysis , Target profit ,sales to achive TP , Operation budget
- A product is priced to sell for $12 with average variable costs of $8. The company expects to ear a profit of $400,000 with its total fixed costs of $120,000. Calculate the minimum number of units that must be sold in order to reach this target return.What is the contribution margin per unit?Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profit of £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual total fixed costs equal £147, 200. Considering this information, which of the following statements is true? O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet. O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits. O c. Contribution per unit equals £46. O d. All the answers are true.
- 2. Alliss Limited manufactures de-luxe juicing machines. Each machine has a wholesale price of £225. Variable costs of manufacture are £56 per machine. Because of increased competition, the sales director has reduced the level of sales that the company can realistically expect to make. The actual sales level in 2020 was 3561 machines, but the budget for 2021 is only 3250 machines. Fixed costs for the year 2020 are budgeted at £560 000. Advise the company's directors on whether they should increase the selling price.Answer? ? Financial accounting questionBreak-even analysis Show all your solutions. 1. The Fixed Cost is P4,000. The material and labor costs are P4.00 per unit. The supplier’s selling price is P5.00 per unit. The break-even point is 2. Production has indicated that they can produce widgets at a cost of P4.00 each if they lease new equipment at a cost of P10,000. Marketing has estimated the number of units they can sell at a number of prices (Php4000) Which price/volume option will allow the firm to avoid losing money on this project? 3. A food repacking company estimates sales figures of Php15.5M for their most popular item. Assuming that the item sells at Php375 each, fixed costs are Php4M, and variable cost are Php215 per unit repacked. a. What is the break-even sales volume? b. Find the corresponding profit figures if the actual sales will be as estimated. 4. A manufacturer can sell a certain health supplement for P1,100 per unit. Its total cost consists of a fixed overhead of Php75,000 plus production costs of…