6

Question 6 Madame Gazelle Ltd sells widgets to the manufacturing industry at a price of 70 per widget. Her cost structure is as follows: Material cost per unit - 20 Direct labour cost per unit = 14 Other variable overhead cost per unit - 4 Annual fixed manufacturing overhead - 16,000 Annual fixed selling and administrative overhead - 8,000 What is the sales revenue required to achieve a target profit of 6,000? 8. 65,660 b.42,200 c. E54,400 d.30.016