Lab. Health co is general laboratory clinic, the average direct material cost is $5 per unit, the
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Lab. Health co is general laboratory clinic, the average direct material cost is $5 per unit, the equipment cost is $20,000 per month with a maximum monthly capacity of 50,000 units, Salaries cost is $ 30,000 per month, monthly rent is $10,000, other monthly overheads $ 5,000.
The average price charged per general category lab test is $15. Kindly calculate the following:
1- The full cost of generating per general lab test under three different levels of output, which are ; 15,000 and 25,000, and 45,000 units respectively and calculate the operating profit and operating profit margin under each level of output.
2- The monthly breakeven quantity.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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