Bird Chop Bhd. produces one product (a bird feeding table) that sells for RM50 each. Use...
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Bird Chop Bhd. produces one product (a bird feeding table) that sells for RM50 each. Use the high-low method to split its factory overhead costs into fixed and variable components. The volume and the corresponding total cost information of the company for the past six months are given below: Month 1 2 3 4 5 Units 1,520 1,250 1,750 2,750 3,000 Factory overhead (RM) 36,375 38,000 41,750 56,800 59,000 Required: Calculate the following: (a) Calculate the variable cost per unit and total fixed cost using the high-low method. (b) (c) (d) (e) The contribution per unit towards of bird feeding table. The number of units and value (RM) that would have to be sold to achieve break- even. Calculate the profit earned if Bird Chop Bhd sells 2,850 units. Calculate the profit earned if the selling price is reduced by 10% and demand rises by 20% (from 2,850 units). Bird Chop Bhd. produces one product (a bird feeding table) that sells for RM50 each. Use the high-low method to split its factory overhead costs into fixed and variable components. The volume and the corresponding total cost information of the company for the past six months are given below: Month 1 2 3 4 5 Units 1,520 1,250 1,750 2,750 3,000 Factory overhead (RM) 36,375 38,000 41,750 56,800 59,000 Required: Calculate the following: (a) Calculate the variable cost per unit and total fixed cost using the high-low method. (b) (c) (d) (e) The contribution per unit towards of bird feeding table. The number of units and value (RM) that would have to be sold to achieve break- even. Calculate the profit earned if Bird Chop Bhd sells 2,850 units. Calculate the profit earned if the selling price is reduced by 10% and demand rises by 20% (from 2,850 units).
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Lets use the highlow method to calculate the variable cost per unit and total fixed cost a Calculate the variable cost per unit and total fixed cost S... View the full answer
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
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