The following information is available from the annual budget of a company manufacturing onl one item....

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The following information is available from the annual budget of a company manufacturing onl one item. Budgeted output and sales Budgeted selling price per unit Budgeted cost per unit: Material Direct labour Variable overhead Fixed cost per unit Budgeted profit per unit 5000 units Kshs 15 5 10 5 Kshs 40 35 5 i) Calculate the break-even point both in terms of the number of units and sales value. 3 marks 3 marks 3 marks ii) Calculate the margin of safety b) Discuss the usefulness of Margin of Safety as a tool of analysis c) Using clear examples, explain the following cost concepts and terminologies. -Throughput costing -Opportunity cost -Sunk cost 2 marks 2 marks 2 marks The following information is available from the annual budget of a company manufacturing onl one item. Budgeted output and sales Budgeted selling price per unit Budgeted cost per unit: Material Direct labour Variable overhead Fixed cost per unit Budgeted profit per unit 5000 units Kshs 15 5 10 5 Kshs 40 35 5 i) Calculate the break-even point both in terms of the number of units and sales value. 3 marks 3 marks 3 marks ii) Calculate the margin of safety b) Discuss the usefulness of Margin of Safety as a tool of analysis c) Using clear examples, explain the following cost concepts and terminologies. -Throughput costing -Opportunity cost -Sunk cost 2 marks 2 marks 2 marks

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The detailed answer for the above question is provided below ANSWER i Breakeven point in terms of nu... View the full answer