Question
Question 6: The following company provides a single product and have provided their summary forecast data shown below relating to its product for 2020. (8
Question 6: The following company provides a single product and have provided their summary forecast data shown below relating to its product for 2020.
(8 Marks)
| Selling price per unit | $55 |
| Variable manufacturing costs | $23 |
| Annual fixed manufacturing costs | $450000 |
| Variable, marketing, distribution and administration costs | $9 |
| Annual fixed non-manufacturing costs | $229000 |
| Annual volume | 50000 |
a. Calculate the contribution margin per unit.
b. Calculate the contribution margin ratio.
c. Calculate the break-even in units and sales dollars for 2020.
d.Calculate the profit earned in 2020.
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Financial Accounting An Introduction
Authors: Mr Barry Elliott, Mr Augustine Benedict
2nd Edition
0273737651, 9780273737650
