Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please I need to see the working please, so That I can follow.Thank yoy U Section 4: CostVolumeProt Analysis 18 marks Elysium sells two types

Please I need to see the working please, so That I can follow.Thank yoy

image text in transcribed
U Section 4: CostVolumeProt Analysis 18 marks Elysium sells two types of sunglasses: Superstar and Biker. Information about the expected sales volume, selling price and variable cost per unit of the products are as follows: Superstar Biker Budgeted monthly sales 140 200 Selling price 320 370 Variable cost per unit Direct material 70 100 Conversion costs 120 150 The expected monthly xed cost is $16,000. Assume that Elysium pays income taxes of 28% and that xed costs remain constant regardless of the number of product lines. Required: 1. Assume that only Superstar is sold. Calculate the following: (a) Break-even in dollars. (3 marks) (b) Target sales volume in units, assuming a target prot of $32,000 after tax. (4 marks) (c) Margin of safety as a percentage. (3 marks) (d) If Elysium's direct material cost increase by 6%, how many units will the company have to sell to reach its breakeven point? (3 marks) 2. Assume that both products are sold (Superstar and Biker). Calculate the total number of Superstar that needs to be sold to break-even

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

Understanding Corporate Annual Reports

Authors: William Pasewark

7th Edition

0073526932, 9780073526935

More Books

Students also viewed these Accounting questions