Question Three AU Ltd manufactures and sells a single product, the company's sales and expenses for the month of January 2021 were as follows: Total (Kshs) Value per unit (Kshs) Sales 1,200.00 80.00 Less: Variable expenses 840.00 56.00 Contribution 360.00 24.00 Less: Fixed expenses 300.00 Net income 60.00 Required: (i) (ii) (iii) What is the monthly breakeven point in units and in shillings? What is the total contribution margin at breakeven point? How many units would be sold each month to earn a minimum target net income of kshs. 36,000? -1.:11:

Question Three AU Ltd manufactures and sells a single product, the company's sales and expenses for the month of January 2021 were as follows: Total (Kshs) Value per unit (Kshs) Sales 1,200.00 80.00 Less: Variable expenses 840.00 56.00 Contribution 360.00 24.00 Less: Fixed expenses 300.00 Net income 60.00 Required: (i) (ii) (iii) What is the monthly breakeven point in units and in shillings? What is the total contribution margin at breakeven point? How many units would be sold each month to earn a minimum target net income of kshs. 36,000? -1.:11:

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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