Question
1. The Sherston Brick Company manufactures a standard stone block for the construction industry. The production capacity for the year is 100,000 standard blocks. The
1. The Sherston Brick Company manufactures a standard stone block for the construction industry. The production capacity for the year is 100,000 standard blocks. The selling price per block is $1.60, variable costs are $0.60 per brick, and fixed costs are $60,000 per year.
Calculate the break-even point and total revenue if the company breaks-even. Please show all calculations.
- 2. A firm has fixed costs of $300,000 and produces a product with a selling price of $72.00 and a variable cost of $42.00 per unit. The maximum factory capacity is 20,000 units and plans to sell 15,000 units. Find the balance point.
- Calculate the profit if the company produced and sold 20,000 and 15,000 units respectively . Please show all calculations.
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Question 1 To calculate the breakeven point we need to find the number of units the company needs to sell in order to cover all its costs Selling pric...Get Instant Access to Expert-Tailored Solutions
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Management Accounting
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
6th Canadian edition
013257084X, 1846589207, 978-0132570848
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