Q4) One of the investment companies in the industrial sector incurred the costs mentioned below during its process of investment: Variable Costs $ Fixed Costs $ Direct materials 27.0 Rents 36,000.0 Labors 22.0 Insurance 5,100.0 General Overtimes 15.0 Salaries 48,000.0 Food and refreshment costs 9.0 Maintenance 3,762.0 Revenue of saling prices per unit (139 $) Production Times 1 7 8 10 11 12 13 (months) product of (Z unit) | 1,097 | 1,190 | 1,279| 1,335 1,357 1,383 1,391 1,399 1,401 | 1,408 1,413 1,407 | 1409 Answer the following: A) By adopting Break Even procedures analysis the above production during all given duration? B) Assume that the last five month of production levels has increased at a fixed number of units by (23 units per each month). Analyze this situation and find if there are any B.E.P at any one of the last five months? C)Make a Comparison (graphically) between the two situations for only the last five months? D)If there are any significant changes between the two situation explain these changes?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q4) One of the investment companies in the industrial sector incurred the costs mentioned
below during its process of investment:
Variable Costs $
Fixed Costs $
Direct materials
27.0
Rents
36,000.0
Labors
22.0
Insurance
5,100.0
General
Overtimes
15.0
Salaries
48,000.0
Food and refreshment costs
9.0
Maintenance
3,762.0
Revenue of saling prices per unit (139 $)
Production Times
1
2
3
4
6
7
8
10
11
12
13
(months)
product of (Z unit) | 1,097 | 1,190 1,279 | 1,335 | 1,357 | 1,383 | 1,391 | 1,399 | 1,401
1,408
1,413 1,407
1409
Answer the following:
A) By adopting Break Even procedures analysis the above production during all given duration?
B) Assume that the last five month of production levels has increased at a fixed number of units
by (23 units per each month). Analyze this situation and find if there are any B.E.P at any one of
the last five months?
C)Make a Comparison (graphically) between the two situations for only the last five months?
D)lf there are any significant changes between the two situation explain these changes?
Transcribed Image Text:Q4) One of the investment companies in the industrial sector incurred the costs mentioned below during its process of investment: Variable Costs $ Fixed Costs $ Direct materials 27.0 Rents 36,000.0 Labors 22.0 Insurance 5,100.0 General Overtimes 15.0 Salaries 48,000.0 Food and refreshment costs 9.0 Maintenance 3,762.0 Revenue of saling prices per unit (139 $) Production Times 1 2 3 4 6 7 8 10 11 12 13 (months) product of (Z unit) | 1,097 | 1,190 1,279 | 1,335 | 1,357 | 1,383 | 1,391 | 1,399 | 1,401 1,408 1,413 1,407 1409 Answer the following: A) By adopting Break Even procedures analysis the above production during all given duration? B) Assume that the last five month of production levels has increased at a fixed number of units by (23 units per each month). Analyze this situation and find if there are any B.E.P at any one of the last five months? C)Make a Comparison (graphically) between the two situations for only the last five months? D)lf there are any significant changes between the two situation explain these changes?
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