A to Z Pty Ltd has provided the following planned perunit cost and sales data for the

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A to Z Pty Ltd has provided the following planned per‐unit cost and sales data for the year ended 30 June 2020.

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Fixed factory overhead costs are $1 056 000 per year, and the annual fixed selling and administrative costs are $352 000.
Required

(a) Calculate the break‐even point for 2019 and 2020 in total units and the number of units of each product that must be sold at the break‐even point.

(b) Calculate the number of units of each product that would have had to be sold in 2019 to earn an after‐tax profit of $246 400. Assume a tax rate of 30%.

(c) Calculate the number of units of each product that would have to be sold in 2020 to earn an after‐tax profit of $255 640.

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Accounting

ISBN: 9780730363224

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Beattie Claire, Hellmann Andreas, Maxfield Jodie

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