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Question 1: (30 marks) Part A (60 marks) Hunter Co., projections for the month of June 2021 is as follows: Information Per unit Selling
Question 1: (30 marks) Part A (60 marks) Hunter Co., projections for the month of June 2021 is as follows: Information Per unit Selling price Direct Material 20 Direct Labor 36 Variable overhead Fixed overhead 16 10 Profit per unit Per unit 150 (80) 70 Fixed overhead per unit rate is based on normal capacity of 2,000 units per month & the Budgeted sales for July are 2,000 units. Required: 1- Compute the break-even point in Units and Dollars. (10 marks) 2- How many units must be sold to earn a profit of $90,000? Prove your answer (10 marks) 3- Calculate the Margin of safety (units) (5 marks) 4- Calculate the profit for month of July if the budgeted sales are 2,200 units (5 marks)
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