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Fruity Pie Ltd has manufactured 3 products: Android, Brandy and Charlotte. The following projected data is provided for Year 2. Android Brandy Charlotte Production and
Fruity Pie Ltd has manufactured 3 products: Android, Brandy and Charlotte. The following projected data is provided for Year 2. Android Brandy Charlotte Production and Sales (units) 4000 5000 6000 Selling price per unit 60 80 70 Materials per unit at 7 per kg 2 kgs 5 kgs 5 kgs Labour per unit at 5 per hour 3 hrs 2 hrs 1 hr Variable production overheads at 2 per labour hour Fixed production overheads30,000 are recovered on the basis of projected total units produced. (a) From the above calculate for each product the: (7) (6) (i) variable cost per unit; (ii) contribution per unit. (iii) total cost per unit; (b) Calculate the estimated profit/loss for each product and in total for Year 2. (c) Calculate for Android only the: (1) Break-even Point in units and sales value at projected output; (ii) Margin of Safety in units and sales value at projected output; (iii) Profit or Loss on sales of 1,500 units; (iv) Sales value required to make a profit of 37,500 after tax of 25%; (v) P/V Ratio. (12)
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