Your dad recently decided to set up a coconut oil factory given the global demand . In order to guarantee profitability and his ability to stay in business.He has asked you to help in the decision making .Given an estimated fixed cost of setting of GHC 2m and variable cost of GHC 55 per bottle of oil. Contribution margin is 12.7%. What should be the price (to the nearest whole ) if he wants breakeven at 250,000bottles.
Your dad recently decided to set up a coconut oil factory given the global demand . In order to guarantee profitability and his ability to stay in business.He has asked you to help in the decision making .Given an estimated fixed cost of setting of GHC 2m and variable cost of GHC 55 per bottle of oil. Contribution margin is 12.7%. What should be the price (to the nearest whole ) if he wants breakeven at 250,000bottles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Your dad recently decided to set up a coconut oil factory given the global demand . In order to guarantee profitability and his ability to stay in business.He has asked you to help in the decision making .Given an estimated fixed cost of setting of GHC 2m and variable cost of GHC 55 per bottle of oil. Contribution margin is 12.7%. What should be the price (to the nearest whole ) if he wants breakeven at 250,000bottles.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education