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1 Aren plc has prepared the following budget for one of its products, the Gooner, for the forthcoming year: Selling price per unit Selling and
1 Aren plc has prepared the following budget for one of its products, the Gooner, for the forthcoming year: Selling price per unit Selling and distribution costs per unit 20.50 Variable materials and labour costs per unit 7.50 1.30 Production overheads (75% of which are fixed) 1,600,000 190,000 160,000 units Fixed selling and distribution costs Production and sales Required: a) Calculate the total budgeted variable costs per unit. b) Calculate the budgeted contribution per unit. (4 marks) (2 marks) c) Calculate the break-even sales volume (in whole units) and break-even sales revenue. (4 marks)
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