A factory manufactures two main products. Product X has unit costs of production during a...
70.2K
Verified Solution
Link Copied!
Question
Accounting
A factory manufactures two main products.
Product X has unit costs of production during a trading year as follows:
$
Components 325
Labour 240
Production overheads 85
Distribution expenses 60
All the cost of the components varies directly with the number of units produced. 65% of the labour costs vary directly with the number of units produced. The production overheads do not vary with the number of units produced. 85% of the distribution expenses vary directly with the number of units produced.
(a) Calculate the variable cost per unit and the fixed cost per unit for the trading year
Product Y has fixed costs of $1,200,000 and variable costs per unit of $785 during a trading year. It is sold to wholesalers at $870 per unit.
(b) Calculate
(i) the number of units that must be sold in order to break even
(ii) the level of output required to provide a profit of $500,000
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.