Question
The following data relates to a company which manufactures a single product for the month of May, 2012. Sales in Units 10,000 Profit Taka (10,000.00)
The following data relates to a company which manufactures a single product for the month of May, 2012.
Sales in Units 10,000
Profit Taka (10,000.00)
Fixed Cost Tk. 30,000.00
Per unit variable Cost Tk. 8.00
On the basis of the above information, determine:
1. What increased sales volume is required to cover an extra attractive packaging cost of Tk. 0.50 per unit to increase the sales, at the existing sale price to yield zero profit
2. What increased sales volume is required, at the present sale price, to cover an additional publicity expenses of Tk. 5,000.00 for the period, while yielding a profit of Tk. 5,000.00
3. What increased sales volume is required to reach a profit of tk. 4,000.00 while reducing the selling price by 3% per unit
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