Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the question as soon as possible Question 2 NS plc is to introduce a new product. The following are the product's per unit

image text in transcribed

Please answer the question as soon as possible

Question 2 NS plc is to introduce a new product. The following are the product's per unit data: f Selling price 12.15 Variable costs: Materials 4.10 Labour. 2.60 Overheads 1.05 Specific incremental fixed costs for this new product amount to 112,420 Maximum production/sales volume is 45,000 units. Required: (a) The breakeven sales volume (in units) and revenue (in f's). [4 marks] (b) The profit for the maximum production/sales volume. [4 marks] (c) The sales volume required to yield a profit of 61,380 and the margin of safety for this sales volume [6 marks) (d) Calculate the effect on the breakeven point if the both incremental fixed costs and labour costs increase by 10% [6 marks) (e) State FIVE assumptions made in breakeven analysis. (10 marks]

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

Survey Of Accounting

Authors: Carl S. Warren

1st Edition

0538870850, 9780538870856

More Books

Students also viewed these Accounting questions

Question

Discuss why mode of entry and sales management are closely related.

Answered: 1 week ago

Question

Explain how humanistic therapists use the technique of reflection.

Answered: 1 week ago

Question

Please make it fast 2 3 1

Answered: 1 week ago

Question

Identify the critical elements in a performance management system

Answered: 1 week ago

Question

Identify the skills necessary for effective coaching

Answered: 1 week ago