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a) A company makes a single product. The following is the cost structure: Selling price per unit 150 Direct material 40 Direct labour cost per
a) A company makes a single product. The following is the cost structure: Selling price per unit 150 Direct material 40 Direct labour cost per unit 35 Variable overhead cost per unit 30 Total fixed costs 850,000 ======= Budgeted production and sales 50,000 units Maximum possible production 65,000 units TASKS a) i Calculate the budgeted profit. ii Calculate the break-even point in units. iii Calculate the profit if an extra 100,000 was spent on marketing and 60,000 units are made and sold.
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