Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TRUDO Investments ltd produces and sells top range dance shoes. The company expects to sell 1,450 dance shoes at a price of 28 per

image text in transcribed

TRUDO Investments ltd produces and sells top range dance shoes. The company expects to sell 1,450 dance shoes at a price of 28 per pair. The variable expenses are 18 per unit and fixed costs are 8,250. Required: a) Calculate the Break Even Point in number of units (4 marks). b) Calculate the Break Even Point in value of sales (4 marks). c) Calculate the Margin of Safety in units and value of sales (4 marks). d) How many units must the company produce to reach a target profit of 36,000 (4 marks)? A e) What's the value of sales the company needs to generate a profit of 25,500 (4 marks)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

9th edition

9781285401072, 1111971722, 1285401077, 978-1111971724

Students also viewed these Accounting questions

Question

Discuss the various types of policies ?

Answered: 1 week ago

Question

Briefly explain the various types of leadership ?

Answered: 1 week ago

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago