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PPP LTD currently provides a single service. The cost per unit is as follows. GH Selling price 130 Direct materials 22 Direct labour 15 Direct
PPP LTD currently provides a single service. The cost per unit is as follows.
GH
Selling price 130
Direct materials 22
Direct labour 15
Direct expenses 3
Variable overheads 10
Total fixed cost for the period amount to GH 1.6m. The projected sales unit is 28,000.
You are required to calculate:
a)the breakeven point, in sales units and value per month;
b)the margin of safety for next month;
c)the budgeted prot for next month;
d)the sales required to achieve a prot of GH250,000 in a month.
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