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Q2 (a) Kimberley-Clark makes luxury hampers for sale in a chain of high-class department stores. The following financial information is available in Table Q2. Current
Q2 (a) Kimberley-Clark makes luxury hampers for sale in a chain of high-class department stores. The following financial information is available in Table Q2. Current output and sales are set at 30,000 hampers per year, though the firm has the capacity to produce 50,000 hampers per year. Table Q2 COST ELEMENT 1. Wholesale price 2. Labor and material costs 3. Bought-in components 4. Overheads PRICE (RM) 80 15 25 800,000 (i) Identify and calculate the fixed cost. (2 marks) (ii) Identify and calculate the variable cost. (2 marks) (iii) Calculate the break-even quantity for the firm. (3 marks) (iv) Calculate the level of profit the firm is making
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