Consider the following data from a mining production department involved in dimension stone production. The...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Consider the following data from a mining production department involved in dimension stone production. The intention of the mine is to produce and sell its products under the following cost and income structure.
Selling price US$65/tonne
Labour cost US$11/tonne
Material cost US$24/tonne
Fixed Costs US$1,200,000
a) Calculate the contribution margin per tonne
b) Estimate the breakeven point (BEP) in tonnes and monetary value
c) Determine the variable cost at BEP
d) How many tonnes should be sold to realise a profit of US$675,000
e) How many sold tonnes make a margin of safety of 30%?
f) Estimate the percentage change noted in the selling price if the BEP increases by 45% while the fixed costs also register a decline of 10%
g) Prepare a table showing VC, TC, FC and Profit/Loss for the quantities ranging from 0 to 80,000 at spacing of 5,000 tonnes.
h) Produce a chart showing the trends of TR, TC , FC and VC and indicate the BEP on the chart
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.