Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 1 (10 marks) bedok engineering pte ltd ma

Question 1 (10 marks) Bedok Engineering Pte Ltd manufactures and sells water filters for domestic...

80.2K

Verified Solution

Question

Accounting

image

Question 1 (10 marks) Bedok Engineering Pte Ltd manufactures and sells water filters for domestic household use. Price and cost data are as follows: $25.00 Selling price per filter Variable costs per filter: Direct material Direct labour Manufacturing overhead Selling costs Total variable costs per filter $10.50 5.00 3.00 1.30 $19.80 Annual total fixed costs: Manufacturing overhead Selling and administrative Total fixed costs $192,000 276,000 $468,000 Forecast annual sales (120,000 filters) $3,000,000 Required: a) What is Bedok's break-even point in sales revenue? (2 marks) b) How many filters does Bedok need to sell to make a profit of $500,000? (3 marks) c) Explain how Bedok could use cost-volume-profit (CVP) analysis to analyse the impact of increasing variable selling costs and cutting fixed administrative costs

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students