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i need the answers asap North Ltd manufactures two products. The following budgeted information relates to each product: Selling Price Per Unit Direct Materials Cost
i need the answers asap
North Ltd manufactures two products. The following budgeted information relates to each product: Selling Price Per Unit Direct Materials Cost Per Unit Direct Labour Hours Per Unit Direct Labour Wage Rate Per Hour Variable Overheads Per Unit Normal production and sales per month (units) TOTAL fixed overheads PER MONTH Product Direction 200 92 6 hours 8 14 1900 72,000 Product Action 250 145 5 hours 8 15 4000 196,000 Required a. Calculate the following for each Product, based on the information given above: 1. Contribution per unit II. Break-even point in terms of Sales Revenue iii. Margin of Safety in units iv. Budgeted Profit per month b. The production manager is concerned that there will be a shortfall of labour hours during the next month due to staff holidays. He estimates that there will be 15,000 hours available. Calculate the amount of units that should be produced in order to maximise profit/minimise loss and calculate the estimated profitloss figure for the next month. C. Explain the importance of contribution per unit for decision making and state what could be done to ensure there were sufficient labour hours available to meet demand shown in the original table Step by Step Solution
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