b. C. Selling Price Per Unit Direct Materials Cost Per Unit Cost per kg of material...

 

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b. C. Selling Price Per Unit Direct Materials Cost Per Unit Cost per kg of material Direct Labour Hours Per Unit Direct Labour Wage Rate Per Hour Variable Overheads Per Unit Asan Ltd manufactures two products. The following budgeted information relates to each product. Production and sales per month (units) Fixed overheads per month LAEN Product Alpha ii. 70 12 6 2 6 3 Required a. Calculate the following for each Product, based on the information given above: 3100 43000 Product Beta Contribution per unit Break even point in terms of Sales Units and Sales Revenue Margin of Safety as a % of normal production iv. Budgeted Profit per month I 90 20 4 7 7800 92000 The production manager has been warned that there could be a shortfall of material during the next month due to transportation strike. He estimates that there will be 20,000 kilograms available. Calculate the amount of units that should be produced in order to maximise profit/minimise loss and calculate the estimated profit/loss figure for the next month. You have just taken on a new Finance Manager has not come across the terms in part a) of this question. Please draft short memo to him explaining each of the figures calculated in part a). Ensure you explain which is the better product and why. b. C. Selling Price Per Unit Direct Materials Cost Per Unit Cost per kg of material Direct Labour Hours Per Unit Direct Labour Wage Rate Per Hour Variable Overheads Per Unit Asan Ltd manufactures two products. The following budgeted information relates to each product. Production and sales per month (units) Fixed overheads per month LAEN Product Alpha ii. 70 12 6 2 6 3 Required a. Calculate the following for each Product, based on the information given above: 3100 43000 Product Beta Contribution per unit Break even point in terms of Sales Units and Sales Revenue Margin of Safety as a % of normal production iv. Budgeted Profit per month I 90 20 4 7 7800 92000 The production manager has been warned that there could be a shortfall of material during the next month due to transportation strike. He estimates that there will be 20,000 kilograms available. Calculate the amount of units that should be produced in order to maximise profit/minimise loss and calculate the estimated profit/loss figure for the next month. You have just taken on a new Finance Manager has not come across the terms in part a) of this question. Please draft short memo to him explaining each of the figures calculated in part a). Ensure you explain which is the better product and why.

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Answer a i Selling price per unit Less Variable cost per unit Direct materials Direct labor Variable ... View the full answer