Q2: Power, Co. manufactures plastic products. The company produced 6.150 units inDecember while the annual normal production capacity is 102.000 units. The unitselling price is 150 TL. The production costs of December are stated below:Q2:Cost itemsClassification TLDirect materials 100% variable 300.000Direct labor100% variable 225.00037.000Indirect Material 100% variableIndirect Labor20%variable115.000UtilityDepreciationRent40% variable75.000100% Fixed93.000100% Fixed100.000a) Compute the annual total cost function.b) Calculate the total sales that operating profit is zero (breakeven point) for 2020.

Name: Q2: Power, Co. manufactures plastic products. The company produced 6.
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Description: Q2: Power, Co. manufactures plastic products. The company produced 6.150 units inDecember while the annual normal production capacity is 102.000 units. The unitselling price is 150 TL. The production costs of December are stated below:Q2:Cost itemsC

Fixed costs are costs that do not change with a change in the level of activity. Variable costs are…

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Power, Co. manufactures plastic products. The company produced 6.150 units in December while the annual normal production capacity is 102.000 units. The unit selling price is 15O TL. The production costs of December are stated below: Q2: Classification TL Cost items Direct materials 100% variable 300.000 Direct labor Indirect Material 100% variable 37.000 Indirect Labor Utility Depreciation Rent 100% variable 225.000 20%variable 40% variable 115.000 75.000 93.000 100% Fixed 100% Fixed 100.000 a) Compute the annual total cost function. b) Calculate the total sales that operating profit is zero (breakeven point) for 2020.

Power, Co. manufactures plastic products. The company produced 6.150 units in December while the annual normal production capacity is 102.000 units. The unit selling price is 15O TL. The production costs of December are stated below: Q2: Classification TL Cost items Direct materials 100% variable 300.000 Direct labor Indirect Material 100% variable 37.000 Indirect Labor Utility Depreciation Rent 100% variable 225.000 20%variable 40% variable 115.000 75.000 93.000 100% Fixed 100% Fixed 100.000 a) Compute the annual total cost function. b) Calculate the total sales that operating profit is zero (breakeven point) for 2020.

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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