Pilot Ltd. Manufactures and sells pens. Current sales output is 5 million annually at a selling price
Fantastic news! We've Found the answer you've been seeking!
Question:
Pilot Ltd. Manufactures and sells pens. Current sales output is 5 million annually at a selling price of £0.50 per unit. Fixed costs are £900,000 per year. Variable costs are £0.30 per unit.
Required:
a) What is the current operating profit for a year?
b) What is the present break-even point in £?
c) How would your answers in question a) and b) change if there is a 10% increase in the selling price and £20,000 increase in fixed costs
Related Book For
Management and Cost Accounting
ISBN: 978-1405888202
4th edition
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
Posted Date: