Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pharmaceuticals has developed the following data for the 20,000 units of new medicines they hope to produce and sell in the following month: I Direct

image text in transcribed
Pharmaceuticals has developed the following data for the 20,000 units of new medicines they hope to produce and sell in the following month: I Direct materials $100,000 Direct labour $50,000 Variable overhead $80,000 Fixed overhead $30,000 Variable selling & admin expenses $48,000 Fixed selling & admin expenses $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

blur-text-image

Get Instant Access with AI-Powered 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

Cornerstones of Managerial Accounting

Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman

2nd Canadian edition

978-0176721237, 978-0176530884

Students also viewed these Accounting questions