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You have the following information: Selling price per unit: $20 Raw materials cost per unit: $10 Variable labour cost per unit: $2 Fixed production costs:
You have the following information: Selling price per unit: $20 Raw materials cost per unit: $10 Variable labour cost per unit: $2 Fixed production costs: $42,000 Required - Type answers to the following in the space provided: 1) What is the break-even point? (3 marks) 2) What is the break-even sales dollar value? (3 marks) 3) If you want a profit of $28,000 how many units need to be sold? (4 marks) 4) Currently, production and sales information for the year are as follows; Maximum production capacity of the warehouse: 25,000 units Current production capacity: 20,000 units You have been approached for a special order of 10,000 units at a price of $15 per. Should you accept the special order. Show all workings. (10 marks
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