Homework Answers
19)
Contribution per unit = Selling price per unit less variable
cost per unit
= 10-4
=6
No of units to be produced and sold = Fixed cost + Required
profit/CPU
=(72000+30000)/6
=102000/6
=17000 units
20)
b) Semi variable cost
Reason: because if output increases to say 16000 unit , freight
cost per unit will change
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19. The following information relates to a product Fixed costs Required profit Selling price per unit...
19. The following information relates to a product Fixed costs Required profit Selling price per unit...
19. The following information relates to a product Fixed costs Required profit Selling price per unit Variable cost per unit 72000 30000 10 4 How many units must be produced and sold to cover fixed costs and make the required profit? a 12000 b. 17000 c. 18000 d. 25500 20. A company is classifying its costs. It discovers that for any level of output between 10000 and 15000 units the freight cost per unit is always the same figure of...
19. The folowing information relates to a product. Fixed costs Required profit Selling price per unit...
19. The folowing information relates to a product. Fixed costs Required profit Selling price per unit Variable cost per unit 72000 30000 10 4 How many units must be produced and sold to cover fixed costs and make the required profit? a. 12000 b. 17000 c. 18000 d. 25500
18. Which of the following statements is wrong regarding the break-even analysis approach to investment appraisal?...
18. Which of the following statements is wrong regarding the break-even analysis approach to investment appraisal? a. Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are c. Order maybe accepted below the normal selling price when the order will d. manufactured or purchased, so we can ignore the marginal cost of sales. result...
18-Which of the following statements is wrong regarding the approach to investment appraisal? a Break-even analysis...
18-Which of the following statements is wrong regarding the approach to investment appraisal? a Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are manufactured or purchased, so we can ignore the marginal cost of sales. e. Order maybe accepted below the normal selling price when the order will result in further contribution to...
MULTIPLE CHOICES I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even...
MULTIPLE CHOICES
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused 1o find ont how far off the ostimates could be b. The marginal cost of sales will have to be incurred whether the goods are c Order mayb d. Marginal costing can help management to decide on pricing policy, the f before the project begins to lose money manufactured or purchased, so we can ignore the marginal cost of sales result in...
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused...
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused 1o find ont how far off the ostimates could be b. The marginal cost of sales will have to be incurred whether the goods are c Order mayb d. Marginal costing can help management to decide on pricing policy, the f before the project begins to lose money manufactured or purchased, so we can ignore the marginal cost of sales result in further contribution...
20. A company is classifying its costs. It discovers that for any level of output between...
20. A company is classifying its costs. It discovers that for any level of output between 10000 and 15000 units the freight cost per unit is always the same figure of $2 per unit. Of which type of cost is this an example? a. Fixed cost b. Semi-variable cost. Stepped fixed cost d. Variable cost
In case of semi variable costs, find out the fixed cost component Particulars 60% 80% Rs...
In case of semi variable costs, find out the fixed cost component Particulars 60% 80% Rs Rs Raw Materials 120000 160000 Direct wages 180000 240000 Interest on loan 40000 40000 Telephone Expenses 30000 36000 Depreciation 25000 25000 Factory Rent 50000 50000 Office Salaries 480000 640000 Overage Charges 15000 18000 Sales Commission 12000 16000 Delivery Expenses 62000 66000 A. Giving proper working notes, identify the costs into Fixed Costs, Variable Costs and Semi variable costs. B. In case of semi variable...
The following data relates to a company with a single product: . Selling price per unit:...
The following data relates to a company with a single product: . Selling price per unit: $150 Variable selling costs per unit: $10 Variable manufacturing costs per unit: $90 Fixed manufactu ring costs: $1 200 000 Fixed selling costs: $400 000 The breakeven point in units is? Select one: a. 32 000 b. 26 667 c. 24 000 d. 20 000
Q3. You are given the following information: Selling price per unit Variable cost per unit Fixed...
Q3. You are given the following information: Selling price per unit Variable cost per unit Fixed cost $ 200 $ 80 $ 12000 You are required to find how many units must be sold by the company to achieve break-even using the income statement approach. АЗ.
19. The following information relates to a product Fixed costs Required profit Selling price per unit Variable cost per unit 72000 30000 10 4 How many units must be produced and sold to cover fixed costs and make the required profit? a 12000 b. 17000 c. 18000 d. 25500 20. A company is classifying its costs. It discovers that for any level of output between 10000 and 15000 units the freight cost per unit is always the same figure of...
19. The folowing information relates to a product. Fixed costs Required profit Selling price per unit Variable cost per unit 72000 30000 10 4 How many units must be produced and sold to cover fixed costs and make the required profit? a. 12000 b. 17000 c. 18000 d. 25500
18. Which of the following statements is wrong regarding the break-even analysis approach to investment appraisal? a. Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are c. Order maybe accepted below the normal selling price when the order will d. manufactured or purchased, so we can ignore the marginal cost of sales. result...
18-Which of the following statements is wrong regarding the approach to investment appraisal? a Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are manufactured or purchased, so we can ignore the marginal cost of sales. e. Order maybe accepted below the normal selling price when the order will result in further contribution to...
MULTIPLE CHOICES
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused 1o find ont how far off the ostimates could be b. The marginal cost of sales will have to be incurred whether the goods are c Order mayb d. Marginal costing can help management to decide on pricing policy, the f before the project begins to lose money manufactured or purchased, so we can ignore the marginal cost of sales result in...
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused 1o find ont how far off the ostimates could be b. The marginal cost of sales will have to be incurred whether the goods are c Order mayb d. Marginal costing can help management to decide on pricing policy, the f before the project begins to lose money manufactured or purchased, so we can ignore the marginal cost of sales result in further contribution...
20. A company is classifying its costs. It discovers that for any level of output between 10000 and 15000 units the freight cost per unit is always the same figure of $2 per unit. Of which type of cost is this an example? a. Fixed cost b. Semi-variable cost. Stepped fixed cost d. Variable cost
The following data relates to a company with a single product: . Selling price per unit: $150 Variable selling costs per unit: $10 Variable manufacturing costs per unit: $90 Fixed manufactu ring costs: $1 200 000 Fixed selling costs: $400 000 The breakeven point in units is? Select one: a. 32 000 b. 26 667 c. 24 000 d. 20 000
Q3. You are given the following information: Selling price per unit Variable cost per unit Fixed cost $ 200 $ 80 $ 12000 You are required to find how many units must be sold by the company to achieve break-even using the income statement approach. АЗ.
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