Question 3 [25 marks] PART A Bromley produces and sells phone cases, for which the following...

 

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Question 3 [25 marks] PART A Bromley produces and sells phone cases, for which the following data is available: Selling price Direct material cost Direct labour cost Variable production overhead Fixed costs Budgeted output Required: a) Calculate the contribution (margin) per unit in £. b) Calculate the number of cases the business must sell to break even. £65 per unit £24 per unit £14 per unit £6 per unit £684,600 per year 62,000 units c) Calculate the number of cases that Bromley needs to sell in order to achieve a profit of £445,200. d) Calculate the margin of safety (expressed as a percentage). e) Define the following terms: i. Prime cost ii. Product costs (3 marks) (2 marks) (2 marks) (2 marks) (2 marks) Question 3 [25 marks] PART A Bromley produces and sells phone cases, for which the following data is available: Selling price Direct material cost Direct labour cost Variable production overhead Fixed costs Budgeted output Required: a) Calculate the contribution (margin) per unit in £. b) Calculate the number of cases the business must sell to break even. £65 per unit £24 per unit £14 per unit £6 per unit £684,600 per year 62,000 units c) Calculate the number of cases that Bromley needs to sell in order to achieve a profit of £445,200. d) Calculate the margin of safety (expressed as a percentage). e) Define the following terms: i. Prime cost ii. Product costs (3 marks) (2 marks) (2 marks) (2 marks) (2 marks)

Answer rating: 100% (QA)

Answer a Contribution margin per unit Selling price per unit Variable cost per unit 65 44 21 Variabl... View the full answer