Question
ABCcompanyproducesandsells a singleproduct,ProductZ.Thefollowingbudgetedinformation is available: ProductZ $ Sellingpriceperunit 50 Variablecostperunit 30 FixedCosts(Total) 200,000 Budgetedsales 750,000 Budgetedprofit 100,000 Required: Calculatethefollowing: Breakevenpointin units Marginof safety Ifthecompanywants to
ABCcompanyproducesandsells a singleproduct,ProductZ.Thefollowingbudgetedinformation is available:
ProductZ | |
$ | |
| Sellingpriceperunit | 50 |
| Variablecostperunit | 30 |
| FixedCosts(Total) | 200,000 |
| Budgetedsales | 750,000 |
| Budgetedprofit | 100,000 |
Required:
Calculatethefollowing:
- Breakevenpointin units
- Marginof safety
Ifthecompanywants to increase itsprofitto$200,000/=,calculatehowmanyunitsshould be produced andsold so as to achieve this target.
Step by Step Solution
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Step: 1
ABC Company Analysis 1 Breakeven Point in Units The breakeven point is the level of sales where tot...
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An Introduction To Statistical Methods And Data Analysis
Authors: R. Lyman Ott, Micheal T. Longnecker
7th Edition
1305269470, 978-1305465527, 1305465520, 978-1305269477
