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Power Se manufactures, plastic products. The company produced 6.150 units in December while the annual normal production capacity is 102.000 units. The unit selling price
Power Se manufactures, plastic products. The company produced 6.150 units in December while the annual normal production capacity is 102.000 units. The unit selling price is 150 TL. The production costs of December are stated below: Cost items Classification TL Direct materials 100% variable 300.000 Direct labor 100% variable 225.000 Indirect Material 100% variable 37.000 Indirect Labor 20%variable 115.000 Utility 40% variable 75.000 Depreciation 100% Fixed 93.000 Rent 100% Fixed 100.000 a) Compute the annual total cost function. (10 p.) b) Calculate the total sales that operating profit is zero (breakeven point) for 2020. (10 p.) SAAT
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