Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PatMart company manufactures and sells two products, sampa and adwoa. Forecast data for the next year are as follows: sampa adwoa Sales (units) 80,000 20,000
PatMart company manufactures and sells two products, sampa and adwoa. Forecast data for the next year are as follows: sampa adwoa Sales (units) 80,000 20,000 12 8 Sales price per unit (GHS) Variable cost per unit (GHS) 8 3 Annual fixed cost is estimated at GHS 273,000 Required: a) Compute the Break Even Point both in Units and GHS. b) Assuming PatMart company desires to earn a before tax profit of GHS100,000 i. calculate the number of sampas and adwoas that need to be sold to achieve the profit target ii. compute the sales revenue to generate to achieve the profit target iii. prepare PatMart company's income statement
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started