Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A manufacturing company pays $ 1 6 , 7 0 0 per month for rent and utitioes. $ 4 1 , 8 5 0 for

A manufacturing company pays $16,700 per month for rent and utitioes. $41,850 for administrative salaries, $4800 for insurance costs, and $627 res tor equipment rental. The variable costs are $45 per unit for moteriol ond 522 per ant for tabour. It needs to manufacture and sell 3,100 units to breakeren.
a. What is the selling price per unit? (3 marks)
b. What is the total revenue per month to break even? (2 morks)
What is the net income if 4,500 units are sold? (2 marks)
If labour costs increase 15%(not including odministrotive salorest) ong tas factory needs to drop the selling price 7% to stimulate demand, what is be new break even price? (3 marks)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Research On Professional Responsibility And Ethics In Accounting Volume 24

Authors: Charles Richard Baker

1st Edition

180071758X, 9781800717589

More Books

Students also viewed these Accounting questions