The company's variable costs were 52.3 million and fixed costs 30.5 million. Sales revenue, on
Question:
The company's variable costs were € 52.3 million and fixed costs € 30.5 million. Sales revenue, on the other hand, amounted to EUR 85.2 million (basic situation).
a) Find out the critical point of the company (M €) and the safety margin (%).
b) At what sales volume would the company's profit be € 4 million?
c) What would be the company's result if the company reduced the price of its product by 5% and thus increased its sales volume (number of units) by 10%? How much volume increase (as a percentage) would be needed to make the price reduction profitable?
3) The budget information of a multi-product company is as follows (figures € 1,000).
Warehouse | Making | Assembly | Admin. & marketing | |
Direct costs | 3240 | 4630 | 4120 | |
Changing overhead | 285 | 526 | 461 | |
Fixed overhead | 952 | 1390 | 1170 | 3720 |
The direct costs of Product X in stock are 26.0 € / piece, in processing 47.5 € / piece and in assembly 33.9 € / piece. Find out the minimum production value, production value and cost value of product X.
Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant