Blue Company manufactures and sells a single product. The following are the cost and selling...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Blue Company manufactures and sells a single product. The following are the cost and selling structure: Selling Price (per unit)$60 Less: Direct materials (per unit)$11 Direct labour (per unit).$18 Variable overhead (per unit)..$7 Labour overhead (per unit).$6 Profit (per unit).$18 The fixed overhead is based on normal capacity of 1,000 units per month. Assume that the same amount is spent each month on fixed overheads. Budgeted sales for the next month are 1,100 units. Required: (i) calculate the break-even point in sales units and sales dollars per month. (4 marks) (ii) calculate the margin of safety in units for next month. (2 marks) (iii) calculate the budgeted profit for next month. (2 marks) (iv) calculate the sales units and sales dollars required to achieve a profit of $12,000 in a month. (4 marks) (iv) explain three (3) key assumptions in carrying out break-even point or cost-volume-profit analysis. (3 marks)
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.