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The  Sock  company  buys  hiking  socks  for  GHS6  per  pair  and  sells  them  for  GHs 10. Management  budgets monthly  fixed costs of GHS  12.000 for sales volume  between O   and 12,000 pairs.   Required: Consider the following questions separately by using the foregoing information each time. 1. Calculate the breakeven point in units   2. The Sock Company  reduces  its sales  price  from  GHS  10   per  pair to  GHS8  per  pair. Calculate the new breakeven point in units   3. The Sock Company  finds a new supplier for the socks. Variable  costs will decrease  by GHS1per pair. Calculate the breakeven point in  units.

The  Sock  company  buys  hiking  socks  for  GHS6  per  pair  and  sells  them  for  GHs 10. Management  budgets monthly  fixed costs of GHS  12.000 for sales volume  between O   and 12,000 pairs.   Required: Consider the following questions separately by using the foregoing information each time. 1. Calculate the breakeven point in units   2. The Sock Company  reduces  its sales  price  from  GHS  10   per  pair to  GHS8  per  pair. Calculate the new breakeven point in units   3. The Sock Company  finds a new supplier for the socks. Variable  costs will decrease  by GHS1per pair. Calculate the breakeven point in  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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The  Sock  company  buys  hiking  socks  for  GHS6  per  pair  and  sells  them  for  GHs 10. Management  budgets monthly  fixed costs of GHS  12.000 for sales volume  between O   and 12,000 pairs.

 

Required:

Consider the following questions separately by using the foregoing information each time.

1. Calculate the breakeven point in units

 

2. The Sock Company  reduces  its sales  price  from  GHS  10   per  pair to  GHS8  per  pair. Calculate the new breakeven point in units

 

3. The Sock Company  finds a new supplier for the socks. Variable  costs will decrease  by GHS1per pair. Calculate the breakeven point in  units.

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