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10) Hove Glass Co, a small family run business, manufactures hand blown glass products and has an established reputation for quality going back several
10) Hove Glass Co, a small family run business, manufactures hand blown glass products and has an established reputation for quality going back several decades. Owing to increased demand for its most popular products from customers in the Middle and Far East, Hove Glass Co has focused on manufacturing a single product, a vase available in an array of colours, which has the following cost and selling price structure: C/unit /unit Selling price 200 Direct material 64 Direct labour 60 Variable overhead 16 Fixed overhead 20 168 112 Profit per unit The fixed overhead absorption rate is based on the normal capacity of 2,000 units per month. Assume that the same amount is spent each month on fixed overheads Budgeted sales for next month are 2.200 units. Required (4) Calculate the breakeven sales units and the breakeven sales value for the next month. Q Search ENG
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