Factory A produces bicycles, which are sold for

100

each. The factory can make up to 1,000 bicycles a month. Each month, the factory incurs total fixed costs of

16,000

in rent, security costs, transport and salaries. In addition, the factory incurs variable costs of

60

per bicycle manufactured and sold.\ a. What is the break-even level of output?\ b. What is the break-even level of revenue?\ Calculate BEP using 2 methods: Revenue and via CM ratio\ How many bicycles would Factory A need to produce and sell, in order to make a monthly profit of

20,000

?\ Factory A usually produces and sells 500 bicycles a month. What is its margin of safety ratio, in terms of units of output?\ Factory B produces scooters, which are also sold for

100

each. Like factory

A

, it can make up to 1,000 scooters per month. Unlike Factory A, it has total fixed costs of

44,000

per month, and variable costs of

20

per scooter.\ Calculate (a) the break-even level of output and (b) the break-even level of revenues. Illustrate your answers with a graph.\ How many scooters would Factory B need to produce and sell, in order to make a monthly profit of

20,000

?\ Marionette Ltd makes puppets which it sells for

8

each. Management believes that the company could produce up to 55,000 puppets per year. During the previous year output was 40,000 puppets with the following costs:\ Per Puppet\ Direct materials\ Direct labour\ Variable overheads\ Fixed costs (for year)\ production\ selling\

65,000

\

28,000

\ Required\ a. Calculate the company's break-even level of output for the previous year.\ b. How much profit did the company make in the previous year?\ c. How many more puppets would Marionette Ltd have to sell to make a profit of

50,000

, if the selling price was unchanged?\ d. At what price would Marionette Ltd have to sell 40,000 puppets, in order to make a profit of

50,000

, assuming all other factors remain constant?

Factory A produces bicycles, which are sold for 100 each. The factory can make up to 1,000 bicycles a month. Each month, the factory incurs total fixed costs of 16,000 in rent, security costs, transport and salaries. In addition, the factory incurs variable costs of 60 per bicycle manufactured and sold. a. What is the break-even level of output? b. What is the break-even level of revenue? Calculate BEP using 2 methods: Revenue and via CM ratio How many bicycles would Factory A need to produce and sell, in order to make a monthly profit of 20,000 ? Factory A usually produces and sells 500 bicycles a month. What is its margin of safety ratio, in terms of units of output? Factory B produces scooters, which are also sold for 100 each. Like factory A, it can make up to 1,000 scooters per month. Unlike Factory A, it has total fixed costs of 44,000 per month, and variable costs of 20 per scooter. Calculate (a) the break-even level of output and (b) the break-even level of revenues. Illustrate your answers with a graph. How many scooters would Factory B need to produce and sell, in order to make a monthly profit of 20,000 ? Marionette Ltd makes puppets which it sells for 8 each. Management believes that the company could produce up to 55,000 puppets per year. During the previous year output was 40,000 puppets with the following costs: Required a. Calculate the company's break-even level of output for the previous year. b. How much profit did the company make in the previous year? c. How many more puppets would Marionette Ltd have to sell to make a profit of 50,000, if the selling price was unchanged? d. At what price would Marionette Ltd have to sell 40,000 puppets, in order to make a profit of 50,000, assuming all other factors remain constant? Factory A produces bicycles, which are sold for 100 each. The factory can make up to 1,000 bicycles a month. Each month, the factory incurs total fixed costs of 16,000 in rent, security costs, transport and salaries. In addition, the factory incurs variable costs of 60 per bicycle manufactured and sold. a. What is the break-even level of output? b. What is the break-even level of revenue? Calculate BEP using 2 methods: Revenue and via CM ratio How many bicycles would Factory A need to produce and sell, in order to make a monthly profit of 20,000 ? Factory A usually produces and sells 500 bicycles a month. What is its margin of safety ratio, in terms of units of output? Factory B produces scooters, which are also sold for 100 each. Like factory A, it can make up to 1,000 scooters per month. Unlike Factory A, it has total fixed costs of 44,000 per month, and variable costs of 20 per scooter. Calculate (a) the break-even level of output and (b) the break-even level of revenues. Illustrate your answers with a graph. How many scooters would Factory B need to produce and sell, in order to make a monthly profit of 20,000 ? Marionette Ltd makes puppets which it sells for 8 each. Management believes that the company could produce up to 55,000 puppets per year. During the previous year output was 40,000 puppets with the following costs: Required a. Calculate the company's break-even level of output for the previous year. b. How much profit did the company make in the previous year? c. How many more puppets would Marionette Ltd have to sell to make a profit of 50,000, if the selling price was unchanged? d. At what price would Marionette Ltd have to sell 40,000 puppets, in order to make a profit of 50,000, assuming all other factors remain constant