ABCcompanyproducesandsells a singleproduct,ProductZ.Thefollowingbudgetedinformation is available: ProductZ $ Sellingpriceperunit 50 Variablecostperunit 30 FixedCosts(Total) 200,000 Budgetedsales 750,000 Budgetedprofit 100,000
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Question:
ABCcompanyproducesandsells a singleproduct,ProductZ.Thefollowingbudgetedinformation is available:
ProductZ | |
$ | |
Sellingpriceperunit | 50 |
Variablecostperunit | 30 |
FixedCosts(Total) | 200,000 |
Budgetedsales | 750,000 |
Budgetedprofit | 100,000 |
Required:
Calculatethefollowing:
- Breakevenpointin units
- Marginof safety
Ifthecompanywants to increase itsprofitto$200,000/=,calculatehowmanyunitsshould be produced andsold so as to achieve this target.
Related Book For
An Introduction To Statistical Methods And Data Analysis
ISBN: 9781305465527
7th Edition
Authors: R. Lyman Ott, Micheal T. Longnecker
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