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The following information is available for production for the first six months of the accounting period. Month Volume 1 4,200 2 1,500 3 1,100 4
The following information is available for production for the first six months of the accounting period. Month Volume 1 4,200 2 1,500 3 1,100 4 2,900 5 5,100 6 2,200 Cost 38,000 14,000 16,000 32,000 52,000 32,000 The price of every unit produced is 14. The company can produce 60,000 units a month at full capacity. Required: a) Calculate the variable cost per unit and the total fixed overheads per month b) Calculate the break-even point, and explain what this point means c) Calculate the margin of safety in units and % for each month Draw a breakeven chart and identify the breakeven point graphically
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