Malume Ltd manufactures and sells a special cellphone for $20. The summarized incomestatement from 2019 is as follows$$Sales800 000Direct materials120 000Direct wages160 000Variable production over heads80 000Fixed administration over heads75 000Fixed production over heads100 000Fixed selling and distribution over heads60 000595 000Net profit before tax205 000Less provision for tax (40%)82 000Net profit after tax123 000Requireda) Calculate the break-even point in dollars and in units for 2019b) Determine the number of units to sell in 2020 in order to achieve after profit of $150 000c) Calculate the sales value required to achieve a net profit before tax of 15% of total revenue

The break-even point is when total cost and total income are equal, indicating that your small firm…

Malume Ltd manufactures and sells a special cellphone for $20. The summarized income statement from 2019 is as follows Sales 800 000 Direct materials 120 000 Direct wages 160 000 Variable production over heads 80 000 Fixed administration over heads 75 000

Malume Ltd manufactures and sells a special cellphone for $20. The summarized income statement from 2019 is as follows Sales 800 000 Direct materials 120 000 Direct wages 160 000 Variable production over heads 80 000 Fixed administration over heads 75 000

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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