Question
Pharmaceuticals has developed the following data for the 20,000 units of new medicines they hope to produce and sell in the following month: Direct materials
Pharmaceuticals has developed the following data for the 20,000 units of new medicines they hope to produce and sell in the following month: Direct materials Direct labour Variable overhead Fixed overhead Variable selling & admin expenses Fixed selling & admin expenses $100,000 $50,000 $80,000 $30,000 $48,000 $32,000 Required: a) At sales price of $38.00 per unit, how many units would Ganges have to sell in order to break-even? b) At a sales price of $43.00per unit, how many units would Ganges have to sell in order to produce a profit of $20,000? c) If 16,000 units were sold, what price would Ganges have to charge in order to produce a profit of $42,000 d) Provide one example of management decisions that benefit from cost-volume-analysis (CVP)
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