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A company manufactures and sells a single product, ABC. The company budgets to produce and sell 5,000 units at $800 each. The following represents an
A company manufactures and sells a single product, ABC. The company budgets to produce and sell 5,000 units at $800 each. The following represents an extract from the standard cost statement for the product:
Description | Unit Cost/$ |
Direct materials | 250.00 |
Direct labour | 180.00 |
Variable overhead | 120.00 |
| 550.00 |
Fixed overhead | 80.00 |
Total cost | 630.00 |
Required:
- Calculate the Break-even point in units and sales revenue.
- Calculate the contribution to sales ratio and state as a percentage
- Calculate the margin of safety in units and revenue.
- Calculate the budgeted profit for the period.
- Calculate the percentage increase in profit if sales volume is increased by 30 percent.
- Calculate the extra units to be sold in order to maintain the same profit level as in e if the selling price is reduced by 10 percent.
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