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Question 4 SWANRULERS Ltd produces a single product (rulers) which are sold directly to customers. The following information is available: Sales (in units) 13,500 Selling
Question 4
SWANRULERS Ltd produces a single product (rulers) which are sold directly to customers. The following information is available:
Sales (in units) | 13,500 |
|
Selling price | 5.00 |
|
| Variable (per unit) | Fixed(in total) |
| ||
Selling costs | 1.50 | 10,800 |
Selling and distribution costs | 1.20 | 5,400 |
Administration Costs | - | 8,100 |
Required:
- Calculate:
- The contribution per unit.
- The break-even point in both units and revenue.
- The operating profit if 11,000 units are sold.
- The sales in units if an operating loss of 3,025 is reported.
- The sales in units to achieve a target profit of 10,000.
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