Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pies Galore Ltd makes two types of meat pies: Spicy Chicken pies (selling for $9 each) and Curry Lamb pies (selling for $14 each).

image text in transcribedimage text in transcribedimage text in transcribed

Pies Galore Ltd makes two types of meat pies: Spicy Chicken pies (selling for $9 each) and Curry Lamb pies (selling for $14 each). The marketing department has predicted that Pies Galore can sell 650,000 pies during the coming year, with sales mix of the pies will be 45.0% for Spicy Chicken pies and 55.0% for Curry Lamb pies. The accountant has prepared the following projected income statement based on the sales forecast. Spicy Chicken Curry Lamb Total $2632500.0 $5005000.0 $7637500.0 Sales revenue $1170000.0 $2502500.0 $3672500.0 Less total variable costs $1462500.0 $2502500.0 $3965000.0 Total Contribution margin Less fixed costs Profit before tax $760000.0 $3205000.0 Part 1: Calculate variable cost per unit for Pies Galore's two product lines: Spicy Chicken and Curry Lamb (2 marks) Spicy Chicken Pies - variable cost per unit: $

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

Payroll Accounting 2016

Authors: Jeanette Landin, Paulette Schirmer

2nd edition

978-1259821950, 1259821951, 1259572196, 978-1259572197

More Books

Students also viewed these Accounting questions