a) Teresa Limited sells internet boosters. The target profit for the year is $500,000 with a...

   

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a) Teresa Limited sells internet boosters. The target profit for the year is $500,000 with a selling price of $300 per unit. The production costs are as follows: < Variable cost per unit $80 < Annul fixed costs for the year is $3,080,000 Required: < i. Calculate the breakeven point in units. The sales manager is considering increasing the price to $360 per unit, with an expected in sales volume. < 1 ii. iii. Calculate the new breakeven point in units if the selling price is increased to $360 per unit. Briefly explain the reason for the difference in breakeven point before and after the increase in the selling price of the panel. b) Describe the three categorises of inventories found in manufacturing companies. c) Below are the costs incurred during the year by Teresa Limited to manufacture 1,000 aircon compressors: < ii. Costs → Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Administrative expense Marketing and Selling expenses Required: i. Amount $ 500,000 400,000 240,000 85,000 € 120,000 125,000 ¹ Using Absorption costing, calculate the total product cost. Calculate the cost per aircon compressor. ← ki a) Teresa Limited sells internet boosters. The target profit for the year is $500,000 with a selling price of $300 per unit. The production costs are as follows: < Variable cost per unit $80 < Annul fixed costs for the year is $3,080,000 Required: < i. Calculate the breakeven point in units. The sales manager is considering increasing the price to $360 per unit, with an expected in sales volume. < 1 ii. iii. Calculate the new breakeven point in units if the selling price is increased to $360 per unit. Briefly explain the reason for the difference in breakeven point before and after the increase in the selling price of the panel. b) Describe the three categorises of inventories found in manufacturing companies. c) Below are the costs incurred during the year by Teresa Limited to manufacture 1,000 aircon compressors: < ii. Costs → Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Administrative expense Marketing and Selling expenses Required: i. Amount $ 500,000 400,000 240,000 85,000 € 120,000 125,000 ¹ Using Absorption costing, calculate the total product cost. Calculate the cost per aircon compressor. ← ki

Answer rating: 100% (QA)

a Breakeven Point in Units The breakeven point is the point at which total revenue equals total costs resulting in zero profit To calculate the breakeven point in units we can use the following formul... View the full answer