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XYZ Company manufactures a product called PERMA. Pertinent cost and revenue data relating to the manufacture of this product is given below: Shs Selling price
XYZ Company manufactures a product called "PERMA".
Pertinent cost and revenue data relating to the
manufacture of this product is given below:
Shs
Selling price per unit
66
Variable production cost per unit
44
Variable selling cost per unit
4
Fixed production cost (total)
Shs.200,000
Fixed selling and administrative cost (total)
Shs.99,000
Required
a)
Calculate the break-even sales level in shillings;
b)
Suppose the company desires to make a profit of shs.195,000, what should be the output in
units?
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