7. Using the following symbols:

Selling price per unit S

Variable cost per unit V

Annual fixed costs F

Which of the following represents the required level of output to achieve a profit of 10,000?

A. F + (10,000 / (S - V))

B. 10,000 / (S - V - F)

C. (10,000 +F)/(S-V)

D. Fx (10,000 / (S - V))

8. A company is budgeting for production and sale of two of its products, Jacks and Rakes, and has just been informed that its sole supplier of direct materials has gone out of business leaving it with irreplaceable Inventory of 1.740kg of raw material L.

Relevant figures for the two products are:

Jacks Rakes

Maximum demand 800 units 400 units

Budgeted contribution 30 per unit 40 per unit

Raw material L required 2kg per unit 3kg per unit

If the company wishes to maximise contribution, which of the following is the maximum number of Rakes that it should produce?

O A. 46 units

OB. 47 units

O c. 140 units

OD. 270 units