Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 (4 Marks) FFF Ltd has provided the following production and sales information for each unit produced: Direct materials Direct labour Variable factory overhead

image text in transcribed

Question 2 (4 Marks) FFF Ltd has provided the following production and sales information for each unit produced: Direct materials Direct labour Variable factory overhead Selling price Sales commissions 22 35 15 180 10% of the selling price The fixed costs for the period are $1 125 000. Required A. Calculate the break-even point. (units and dollars) B. Calculate the number of units that must be sold to achieve a profit of $63 000. What is the margin for safety at this sales level? C. Would it be better to sell 16 000 units at a selling price of $180 each or 19 000 units at a selling price of $160? D. If an additional $63 270 is spent on fixed advertising costs, what level of dollar sales must be attained to earn a new profit of $36 000? Assume that there has been no change in the sales price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ACCA Approved Study Text P7 Advanced Audit And Assurance

Authors: BPP

1st Edition

1472744349, 978-1472744340

More Books

Students also viewed these Accounting questions

Question

2. Outline the business case for a diverse workforce.

Answered: 1 week ago