Standard hardware is a private company trading building hardware in Johannesburg, South Africa. You are given the following data by the company as you are an accounting freelancer. Fixed cost                    $4500 Variable cost               $7500 Total sales                   $ 15,000 Output and sold 1500 units. You are asked to calculate the following.   P.V ratio  Break-even point (in units)  Break-even sales (in $)  Profit              Margin of safety  volume of sales to earn profit of $6000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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. Standard hardware is a private company trading building hardware in Johannesburg, South Africa. You are given the following data by the company as you are an accounting freelancer.

Fixed cost                    $4500

Variable cost               $7500

Total sales                   $ 15,000

Output and sold 1500 units.

You are asked to calculate the following.  

  1. P.V ratio 
  2. Break-even point (in units) 
  3. Break-even sales (in $) 
  4. Profit             
  5. Margin of safety 
  6. volume of sales to earn profit of $6000 
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