Question
(c) Estimations Sales and Cost details for one of its products for the next 3 months The company has estimated its sales and production cost
(c) Estimations Sales and Cost details for one of its products for the next 3 months
The company has estimated its sales and production cost for one of its products for the next three months as below:
Particulars | March | April | May |
Units expected to be sold | 10,000 units | 20% more than March sales units | 40% more than March sales units |
Selling Price per unit ($) | 40 | 45 | 50 |
Variable cost per unit ($) | 15 per unit | 15 per unit | 15 per unit |
Fixed Cost for this period | 800,000 |
Estimate the operating income of Pixar Ltd using contribution margin approach for the next three months using the estimated figures given above in (c) (10 marks)
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