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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:

  1. Calculate:
    1. The contribution per unit.
    2. The break-even point in both units and revenue.
    3. The operating profit if 11,000 units are sold.
    4. The sales in units if an operating loss of 3,025 is reported.
    5. The sales in units to achieve a target profit of 10,000.

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