The following information of a company is available for the year 2006: Sales 40,000 Raw materials 20,000 Direct wages 6,000 Variable and fixed OH 10,000 Profit 4,000 Units sold 200 Nos. In the year 2007, wages rate will increase by 50% and fixed cost will decrease by 600. If 300 units are sold in 2007, the total fixed and variable O/H will be 11,400. How many units should be sold in 2007, so that the same amount of profit per unit as in year 2006 may be earned?
The following information of a company is available for the year 2006: Sales 40,000 Raw materials 20,000 Direct wages 6,000 Variable and fixed OH 10,000 Profit 4,000 Units sold 200 Nos. In the year 2007, wages rate will increase by 50% and fixed cost will decrease by 600. If 300 units are sold in 2007, the total fixed and variable O/H will be 11,400. How many units should be sold in 2007, so that the same amount of profit per unit as in year 2006 may be earned?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The following information of a company is available for the year 2006: Sales 40,000 Raw
materials 20,000 Direct wages 6,000 Variable and fixed OH 10,000 Profit 4,000 Units sold 200
Nos. In the year 2007, wages rate will increase by 50% and fixed cost will decrease by `600. If 300
units are sold in 2007, the total fixed and variable O/H will be 11,400. How many units should be
sold in 2007, so that the same amount of profit per unit as in year 2006 may be earned?
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