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pls answer a and b,i will vote u positive Question 2 (Cost Concepts) (15 marks) (a)A cup company wants to make a profit of $100,000
pls answer a and b,i will vote u positive
Question 2 (Cost Concepts) (15 marks) (a)A cup company wants to make a profit of $100,000 in the coming year. Pertinent information is given in the following table. Use the information to determine how many cups has to be sold to achieve this profit. (Roundup to the nearest integer) (Note: Units sold must account for total production costs (direct and overhead) plus required profit.) Table Direct labour hours 0.5 hour/unit Direct labour costs $25/hour Direct material costs $4/unit Overhead cost 110% of direct labour Packaging cost $2/unit Selling price $40/unit (6 marks) (b) The selling price (P) of a consumer good is set to be P = $600 - 0.003D per unit, where D are the total units produced The fixed cost of the factory is $25,000 per year and the total variable cost is given by V = $500 0.007D. Target production is 10,000 units per year. Determine the breakeven point and the level of output that will produce the maximum profit. (9 marks)Step by Step Solution
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