A to Z Pty Ltd has provided the following planned per-unit cost and sales data for the
Question:
A to Z Pty Ltd has provided the following planned per-unit cost and sales data for the year ended 30 June 2016:
A | B | C | |||
Selling price Direct labour cost Direct materials cost Variable factory overhead Variable selling expenses | $90 18 28 10 4 | $100 24 24 12 6 | $80 16 12 8 4 | ||
Units sold in 2015 Planned 2016 unit sales | 24000 31500 | 24000 36000 | 32000 22500 |
Fixed factory overhead costs are $1056000 per year, and the annual fixed selling and administrative costs are $352000.
Required
A. Calculate the break-even point for 2015 and 2016 in total units and the number of units of each product that must be sold at the break-even point.
B. Calculate the number of units of each product that would have had to be sold in 2015 to earn an after-tax profit of $246400. Assume a tax rate of 30%.
C. Calculate the number of units of each product that would have to be sold in 2016 to earn an after-tax profit of $255640.
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett