Q2 (a) Kimberley-Clark makes luxury hampers for sale in a chain of high-class department stores. The following financial information is available in Table Q2. Current output and sales are set at 30,000 hampers per year, though the firm has the capacity to produce 50,000 hampers per year. Table Q2 COST ELEMENT PRICE (RM) 80 1. Wholesale price 2. Labor and material costs 3. Bought-in components 4. Overheads 15 25 800,000 (iii) Calculate the break-even quantity for the firm. (iv) Calculate the level of profit the firm is making.

Q2 (a) Kimberley-Clark makes luxury hampers for sale in a chain of high-class department stores. The following financial information is available in Table Q2. Current output and sales are set at 30,000 hampers per year, though the firm has the capacity to produce 50,000 hampers per year. Table Q2 COST ELEMENT PRICE (RM) 80 1. Wholesale price 2. Labor and material costs 3. Bought-in components 4. Overheads 15 25 800,000 (iii) Calculate the break-even quantity for the firm. (iv) Calculate the level of profit the firm is making.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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