ABC cimited PManufacitures and SElLS a single Produet

$x.$ The standard sercins price is $$20$ per unit and

The standard vari$$ble costs per unit atre as folcons:

DIREC MATERIAL $$5$

DIRECT LAFUUR $$4$

VARIABLe OVERHEADS $$3$

THE BUDBETED PRODUCTION IN UNITS IS $2000$ AND THE

FIXED COSTS ARE: PRODUCTION OVER HEADS $$3200$

Marketing overheads $ $1800$

Administrative overheads $$1000$

REQUiRED:

$($a$)$ Caleulate the standard costs and profit per unit,

AS well AS THE PROFIT IN TOTAL.

$($i$)$ Calculate the breakeven point in units and dollars

$($ii$)$ Calculate the margin of Safety in units and dollars

$($c$)$ If the company plans to make a profit of $$3000,$

calculate the new breakeven point in dollars or units.

$($d$)$ THE AccountaNT IS CONSIDERing MAKING SOME CHANGES BY

increasing the selling Price per UNIT BY $$5,$

WHICH WILL RESULT IN A SALES UNITS REDUCING BY $200$

UNITS. THE FIXED COST WILL IncREASE BY $5\%$ FOR production

OVERHEADS.

Calculate:

$($i$)$ The breakeveN Point in UNITS AND ARLLARS

$($ii$)$ THE PROFIT PER UNIT AND IN TOTAL.