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LMN Ltd has the following information for the production of a single product: Direct Materials Cost per Unit: 5 Direct Labor Cost per Unit: 3
LMN Ltd has the following information for the production of a single product:
- Direct Materials Cost per Unit: £5
- Direct Labor Cost per Unit: £3
- Variable Overhead per Unit: £2
- Fixed Overhead: £20,000
- Expected Production Volume: 10,000 units
Requirements:
- Calculate the total cost per unit.
- Determine the total cost of production.
- If the company plans to sell each unit at £15, calculate the break-even point in units.
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Financial accounting
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
8th Edition
9780135114933, 136108865, 978-0136108863
