HASF ltd makes pipes of one type only. Budget for the year 2020 Units Rupees Sales 150,000
Question:
HASF ltd makes pipes of one type only. Budget for the year 2020
Units Rupees
Sales 150,000 3,000,000
Variable Fixed
Direct material 600,000
Direct labor 450,000 766,000
Factory over head 300,000
Administration overhead 554,000
Note: No need to enter currency symbol and comma and % just type numbers 2 decimal number and percentages (if needed) according to excel (for example: 10000 or 10.65)
Required:
1. Contribution margin per unit
2. Contribution margin ratio
3. Breakeven point in units
4. Breakeven sales
5. Margin of safety ratio
6. HASF is considering acquisition of a new machine this will add RS 262,500 to fixed production overheads but will reduce the labor cost by 50% after this changes what will new break even sales and break even sales in units
break even sales
break even sales in units :
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby