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FutureTech Ltd has the following information for the production of a single product: Direct Materials Cost per Unit: 8 Direct Labor Cost per Unit: 5

FutureTech Ltd has the following information for the production of a single product:

  • Direct Materials Cost per Unit: £8
  • Direct Labor Cost per Unit: £5
  • Variable Overhead per Unit: £3
  • Fixed Overhead: £30,000
  • Expected Production Volume: 15,000 units

Requirements:

  1. Calculate the total cost per unit.
  2. Determine the total cost of production.
  3. If the company plans to sell each unit at £20, calculate the break-even point in units.

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