14. ABC Technology makes tablet computers which it sells for 52 per unit. The company is...

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14. ABC Technology makes tablet computers which it sells for 52 per unit. The company is currently planning for the production and marketing of the product. To meet this purpose, the cost accountant has provided the following cost information relating to the product: Manufacturing: Variable materials Variable labour Other variable costs Fixed cost Administration and selling Variable cost Fixed cost 7 per unit of tablet 12 per unit of tablet 7 per unit of tablet 30,000 per year 6 per unit of tablet 50,000 per year Required: a) Briefly explain the term 'break-even point'. 5 Marks b) Calculate the break-even point in unit and monetary value. 20 Marks c) Calculate the number of computers needed to be produced and sold to make a profit of 15,000. 15 Marks 14. ABC Technology makes tablet computers which it sells for 52 per unit. The company is currently planning for the production and marketing of the product. To meet this purpose, the cost accountant has provided the following cost information relating to the product: Manufacturing: Variable materials Variable labour Other variable costs Fixed cost Administration and selling Variable cost Fixed cost 7 per unit of tablet 12 per unit of tablet 7 per unit of tablet 30,000 per year 6 per unit of tablet 50,000 per year Required: a) Briefly explain the term 'break-even point'. 5 Marks b) Calculate the break-even point in unit and monetary value. 20 Marks c) Calculate the number of computers needed to be produced and sold to make a profit of 15,000. 15 Marks

Answer rating: 100% (QA)

a Briefly explain the term breakeven point The breakeven point is the level of sales at which total revenue equals total costs resulting in neither pr... View the full answer