Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cost volume profit and break even analysis ramprong latatero corp. produces nd sells power banks, The variables costs to produce and sell one unit of

Cost volume profit and break even analysis

  1. ramprong latatero corp. produces nd sells power banks, The variables costs to produce and sell one unit of power bank amount to 1,200.00 while the total fixed manufacturing selling and administrative costs per period ae 36,000. The power banks are sold at 3,000.00 per unit.

a. determine the break even sales in units and is pesos

b. assuming RKC desires a profit of 504,000 what is the required sales volume in units and in pesos?

c. assuming RKC desires a profit of 864,000 what is the required sales volume in units and in pesos?

d. assume for the next period RKC has budgeted sales of 50 units of 150,000 and considering that the company break even sales is 20 units or 60,000, what is the margin of safety in units and in pesos and what is the margin of safety ratio? formulate and informed interpretation.

margin of safety - indicates the amount by which actual or planned sales may be reduced without incurring a loss.

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

Intermediate Accounting Volume 1

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick

7th Edition

1260306747, 978-1260306743

More Books

Students also viewed these Accounting questions

Question

Explain how costs are assigned to activities.

Answered: 1 week ago

Question

How are most students funded?

Answered: 1 week ago

Question

X a 1/4 1/2 b

Answered: 1 week ago