Top Wood is a small manufacturing company currently making a single type ofchair. The managing director presents to you the following details of estimatedrevenue and cost per unit for the year ended 31 December 2021:Quantity(Units)2,000Number of Chairs made and soldPriceunitper(RM)100Selling priceTotal variable cost per unit:RMRaw material15Direct labour16Manufacturing overheadsSelling cost118The following information is taken into consideration:(1)Total manufacturing overheads cost estimated for the year amounting to$110,000 of which 20% is variable manufacturing overhead cost.The company's total selling costs for the year amounting to $19,500inclusive of fixed and variable costs.(2)(3)All units produced can be sold as soon as they are made, and no stocksare kept.(4)The directors have been considering their plan for the year ending 31December 2021. The company intends to increase the sales by 30% ifthe fixed selling costs increase by $14,964 and the direct labour costper unit increase to $18.Required:(i)Calculate the break-even point expressed in unit and amount of sales.

Name: Top Wood is a small manufacturing company currently making a single t
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Description: Top Wood is a small manufacturing company currently making a single type ofchair. The managing director presents to you the following details of estimatedrevenue and cost per unit for the year ended 31 December 2021:Quantity(Units)2,000Number of Cha

Fixed manufacturing overhead costs = Total manufacturing overhead costs - variable manufacturing…

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Top Wood is a small manufacturing company currently making a single type o chair. The managing director presents to you the following details of estimate revenue and cost per unit for the year ended 31 December 2021: Quantity (Units) 2,000 Number of Chairs made and sold Price per unit (RM) 100 Selling price Total variable cost per unit: RM Raw material 15 Direct labour | Manufacturing overheads Selling cost 16 11 8 The following information is taken into consideration: (1) Total manufacturing overheads cost estimated for the year amounting t $110,000 of which 20% is variable manufacturing overhead cost. The company's total selling costs for the year amounting to $19,50 inclusive of fixed and variable costs. (2) (3) All units produced can be sold as soon as they are made, and no stock are kept. (4) The directors have been considering their plan for the year ending 3 December 2021. The company intends to increase the sales by 30% the fixed selling costs increase by $14,964 and the direct labour cos per unit increase to $18. Required: Calculate the break-even point expressed in unit and amount of sales

Top Wood is a small manufacturing company currently making a single type o chair. The managing director presents to you the following details of estimate revenue and cost per unit for the year ended 31 December 2021: Quantity (Units) 2,000 Number of Chairs made and sold Price per unit (RM) 100 Selling price Total variable cost per unit: RM Raw material 15 Direct labour | Manufacturing overheads Selling cost 16 11 8 The following information is taken into consideration: (1) Total manufacturing overheads cost estimated for the year amounting t $110,000 of which 20% is variable manufacturing overhead cost. The company's total selling costs for the year amounting to $19,50 inclusive of fixed and variable costs. (2) (3) All units produced can be sold as soon as they are made, and no stock are kept. (4) The directors have been considering their plan for the year ending 3 December 2021. The company intends to increase the sales by 30% the fixed selling costs increase by $14,964 and the direct labour cos per unit increase to $18. Required: Calculate the break-even point expressed in unit and amount of sales

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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