Aren plc has prepared the following budget for one of its products, the Gooner, for the...

 

Transcribed Image Text:

Aren plc has prepared the following budget for one of its products, the Gooner, for the forthcoming year: Selling price per unit 20.50 Variable materials and labour costs per unit 7.50 1.30 Production overheads (75% of which are fixed) Selling and distribution costs per unit Fixed selling and distribution costs Production and sales Required: a) Calculate the total budgeted variable costs per unit. 1,600,000 190,000 160,000 units b) Calculate the budgeted contribution per unit. (4 marks) (2 marks) c) Calculate the break-even sales volume (in whole units) and break-even sales revenue. (4 marks) Aren plc has prepared the following budget for one of its products, the Gooner, for the forthcoming year: Selling price per unit 20.50 Variable materials and labour costs per unit 7.50 1.30 Production overheads (75% of which are fixed) Selling and distribution costs per unit Fixed selling and distribution costs Production and sales Required: a) Calculate the total budgeted variable costs per unit. 1,600,000 190,000 160,000 units b) Calculate the budgeted contribution per unit. (4 marks) (2 marks) c) Calculate the break-even sales volume (in whole units) and break-even sales revenue. (4 marks)

Answer rating: 100% (QA)

a To calculate the total budgeted variable costs per unit we need to add the variable materials and ... View the full answer