Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Z-Boxes sell for 299 and their variable production cost is 99. The research and development, and fixed production overheads for the year are f1.2 million.

Z-Boxes sell for £299 and their variable production cost is €99. The research and development, and fixed production overheads for the year are f1.2 million.

  1. Calculate the break-even level of sales volume and revenue?
  2. Calculate the break-even revenue using C/S ratio?
  3. The budget revenue is €2.99 million; calculate the margin of safety in units and as a percentage?
  4. Produce a break-even chart and profit-volume chart using the information above?
  5. How many Z-Boxes must be sold to achieve £500,000 profit

Step by Step Solution

3.44 Rating (170 Votes )

There are 3 Steps involved in it

Step: 1

Solution Breakeven level of sales volume and revenue The breakeven level of sales volume is calculated by dividing the fixed costs by the contribution ... 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

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant M. Datar, Madhav V. Rajan

17th Edition

0135628474, 9780135628478

More Books

Students also viewed these Accounting questions