
Concept Introduction:
Cost Volume Profit (CVP) Analysis: The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.
Requirement-a:
To Calculate:
The Cost of production of 9,600 units
Concept Introduction:
Cost Volume Profit (CVP) Analysis: The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.
Requirement-b:
To Calculate:
Average Cost per unit at the level of production of 8000 units and explain why this figure is not useful for manager to produce 9600 units.

Want to see the full answer?
Check out a sample textbook solution
Chapter 12 Solutions
Accounting: What the Numbers Mean
- Vanessa Kerr works at Jamrock Building Society in Jamaica. For 2014, she received a basic pay of $65 000 per month, her commissions were $10,000 monthly and she also received a bonus of 5% of her monthly pay. Vanessa contributed 10% of her basic pay to a pension scheme operated by the company. Jamrock pays $30,000 per month to Vanessa's landlord. She drives a car owned by Jamrock, which is 2 years old and was purchased at a cost of $1,200,000. It is estimated that she has up to 50% private usage of the vehicle. Each month, Vanessa receives lunch vouchers worth $6,000, which may be used in Jamrock's canteen or other nearby restaurants. Jamrock provides Vanessa with a cellular phone and agrees to pay a maximum bill of $45,000 per year. For the year, Vanessa's cellular phone bill was $50,000. Jamrock has an approved ESOP plan. For the year 2014, the employees agreed to purchase 6% of the share capital of 10 million shares of $1 each. There are 50 employees in the plan and each employee…arrow_forwardprovide correct answerarrow_forwardNo AIarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





