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Soul of Light produces lamps. The variable cost of each lamp comprises of direct materials of $6.00, labor costs of $10.00 and variable overheads of
Soul of Light produces lamps. The variable cost of each lamp comprises of direct materials of $6.00, labor costs of $10.00 and variable overheads of $2.00. It has fixed costs of $180,000 and sells its lamps for $30 each. Current sales are 20,000 lamps per annum and the break-even point is 15,000 lamps. What profit would Soul of Light make if it sold 25,000 lamps?
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