ASAP!!Shoaib Co., is a manufacturing company. A summary of the budgeted profit statement for its next financial year is provide. The details is provided below: Rs.Rs.Sales (9,000 units at Rs. 32) 288,000Less: Direct material 54,000 Direct wages 72,000 Production overhead Fixed 42,000 Variable 18,000 186,000Gross profit 102,000Less: Admin and marketing cost: Fixed 36,000 Variable 27,000 63,000Net profit 39,000 Required:Calculate breakeven point in units and amount.How many units must be sold to earn profit before tax Rs. 32,500.

Break-even analysis is an important management tool for an organization through the help of…

Answered: Shoaib Co., is a manufacturing company.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

ASAP!!

Shoaib Co., is a manufacturing company. A summary of the budgeted profit statement for its next financial year is provide. The details is provided below:

	Rs.	Rs.
Sales (9,000 units at Rs. 32)		288,000
Less: Direct material	54,000
Direct wages	72,000
Production overhead
Fixed	42,000
Variable	18,000
		186,000
Gross profit		102,000
Less: Admin and marketing cost:
Fixed	36,000
Variable	27,000
		63,000
Net profit		39,000

Required:

Calculate breakeven point in units and amount.
How many units must be sold to earn profit before tax Rs. 32,500.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions