Question
A company sold 80,000 units earning a profit of Birr 90,000. The Total purchasing Cost of the product is Birr 400,000. Moreover, the company incurred
A company sold 80,000 units earning a profit of Birr 90,000.
The Total purchasing Cost of the
product is Birr 400,000.
Moreover, the company incurred a commission expense (additional
cost) of Birr 40,000 at 5% rate. (Hint: commission expense is calculated as a percentage of
sales).
Develop the total cost equation and find the break-even revenue
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Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
24th Edition
0538475005, 9780538475006
