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Required: Calculate the following for the company: i. The break-even point in units and sales value ii. The profit or loss if sales had been: 2, 400 units iii. The margin of safety in units and sales value at the current output level of 7,400 units

Required: Calculate the following for the company: i. The break-even point in units and sales value ii. The profit or loss if sales had been: 2, 400 units iii. The margin of safety in units and sales value at the current output level of 7,400 units

FINANCIAL ACCOUNTING
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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Please answer question 1 subsection i-iii
1. Blue Ridge plc manufactures a standard product and the following data for the year 2021. Selling price per unit Variable costs per unit: Direct material Direct labour Variable overhead Fixed costs per annum GA $ 50 15 20 10 42,000 Required: Calculate the following for the company: i. The break-even point in units and sales value ii. The profit or loss if sales had been: 2, 400 units iii. The margin of safety in units and sales value at the current output level of 7,400 units
Transcribed Image Text:1. Blue Ridge plc manufactures a standard product and the following data for the year 2021. Selling price per unit Variable costs per unit: Direct material Direct labour Variable overhead Fixed costs per annum GA $ 50 15 20 10 42,000 Required: Calculate the following for the company: i. The break-even point in units and sales value ii. The profit or loss if sales had been: 2, 400 units iii. The margin of safety in units and sales value at the current output level of 7,400 units
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