A company makes two products - X and Y - budgeted details of which are as...

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A company makes two products - X and Y - budgeted details of which are as follows; Selling Price Cost per unit: Direct materials Direct labour (7.00) (8.00) (3.00) (2.20) Variable overhead (3.20) (2.60) Fixed overhead (2.00) (1.00) X Y 25.00 14.00 Profit per unit Budgeted production and sales for the year ended 31 January 2017 are: C Product X 130,000 units Product Y 100,000 units The fixed overhead costs included in X relate to apportionment of general overhead costs only. However, Y also includes specific fixed overheads totalling £40,000 D 9.80 0.20 If only product X were to be made, how many units (to the nearest unit) would need to be sold in order to achieve a profit of £160,000 each year? A 40,678 units B 48,979 units 48,000 units 49,153 units Total marks: (2 marks) A company makes two products - X and Y - budgeted details of which are as follows; Selling Price Cost per unit: Direct materials Direct labour (7.00) (8.00) (3.00) (2.20) Variable overhead (3.20) (2.60) Fixed overhead (2.00) (1.00) X Y 25.00 14.00 Profit per unit Budgeted production and sales for the year ended 31 January 2017 are: C Product X 130,000 units Product Y 100,000 units The fixed overhead costs included in X relate to apportionment of general overhead costs only. However, Y also includes specific fixed overheads totalling £40,000 D 9.80 0.20 If only product X were to be made, how many units (to the nearest unit) would need to be sold in order to achieve a profit of £160,000 each year? A 40,678 units B 48,979 units 48,000 units 49,153 units Total marks: (2 marks)

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