Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

online Question 2 14 marks Question 2 14 marks Use the following information to answer the question. You must show your calculations and present your

image text in transcribed
image text in transcribed
online Question 2 14 marks Question 2 14 marks Use the following information to answer the question. You must show your calculations and present your work neatly and in a suitable format Chuong & Co Ltd make a single product. The budget for January is: Number of units produced and sold 2,500 Sales revenue Material Variable production labour cost Other variable costs Fixed production cost 135,000 31.250 50,000 13,750 28.800 123.800 11.200 Profit Required: a. Calculate revenue and each element of variable cost per unit. Calculate the contribution per unit (4 marks) b. Calculate the breakeven point (2 marks) c. Calculate the number of units and the value of sales required to make a profit of 20,00 (3 marks) d. Calculate the margin of safety in units and as a percentage of expected sales (3 marks) e. Calculate the expected profit if 2,800 units are sold (2 marks) Complete your answers in the spaces on the next page You may enlarge the boxes and continue onto another page if you need to You are recommended to show your workings Sales revenue per unit Materials per unit Variable production labour cost per unit Other variable costs per unit a. Contribution per unit a. Calculate revenue and each element of variable cost per unit. Calculate the contribution per unit (4 marks) b. Calculate the breakeven point (2 marks) c. Calculate the number of units and the value of sales required to make a profit of 20,00 (3 marks) d. Calculate the margin of safety in units and as a percentage of expected sales (3 marks) e. Calculate the expected profit if 2,800 units are sold (2 marks) Complete your answers in the spaces on the next page You may enlarge the boxes and continue onto another page if you need to You are recommended to show your workings Sales revenue per unit Materials per unit Variable production labour cost per unit Other variable costs per unit a. Contribution per unit b. Break-even point c. Target profit d. Margin of safety e. Expected profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audits Of 401k Plans

Authors: Deloitte And Touche

2nd Edition

1119722039, 978-1119722038

More Books

Students also viewed these Accounting questions

Question

What lab tests are performed using a hematocrit tube?

Answered: 1 week ago

Question

Acceptance of the key role of people in this process of adaptation.

Answered: 1 week ago

Question

preference for well defined job functions;

Answered: 1 week ago