Bright company Ltd operates and services photocopier machine located in UDS. The machines are rented from a
Question:
Bright company Ltd operates and services photocopier machine located in UDS. The machines are rented from a wholesaler. The company also pays rental for the spaces used for its services. The following expenses and revenue relationships pertains to Essien company Ltd for 10 photocopiers machines which are rented at a flat rate per month plus GHS 0.30 per copy made. The fixed monthly expenses are as follows; GHS Machines rentals (10 machines) 1,300 Space rentals (10 locations) 400 Wages (operators) 500 Other fixed Cost 200 2,400
Other data: Per Copy Selling price 30 Pesewas Cost of paper, repair and rental charge/ copy 18 Pesewas Marginal contribution 12 Pesewas
Required; a. Compute the monthly Break Even Point in
i. Number of Copies
ii. GHS Sales
b. Compute the company net income if 70,000 copies were made.
c. Suppose the space rental were doubled the current figure;
d. Compute the monthly BEP in i. Number of copies
ii. GHS sales