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onv Could someone answer for me this question .Thank you in advance No.5 A company is about to bring a new product to the market.
onv
Could someone answer for me this question .Thank you in advance
No.5 A company is about to bring a new product to the market. The following budgeted data has been assembled: 36 (a) Direct Material cost per unit 32 Direct Labor cost per unit Variable Overhead cost per unit 55 Selling Price per unit 200 Fixed overheads allotted to the product 680,000 The first draft budgeted production and sales 16,000 units The maximum possible output is 22,000 units. Tasks Calculate the first draft budgeted profit. (b) Calculate the first draft budgeted break-even point. The marketing departments have carried out some market research and are convinced that if an extra 100,000 was spent on marketing, sales would raise to 18,500 units. Calculate the profit. It is thought that if the selling price is increased to 210 per unit, it would still be possible to sell 15,000 units. Calculate the profit. The production department thinks that by improving the quality and packaging of the product by spending an extra 6 per unit making the product, sales would raise to 18,400 units. The selling price would be kept at 200. Calculate the profit (1) Explain about the break-even analysis. (d)Step by Step Solution
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