Your organisation, Carlisle Limited produces one product that is sold for N$125 per unit and each of
Question:
Your organisation, Carlisle Limited produces one product that is sold for N$125 per unit and each of these units has variable costs as follows:
9 hours’ labour at N$6.50 per hour
Royalties at N$4.50 per unit
14 square meters of material per unit at N$3.60 per square meter
The fixed costs of Carlisle Limited are N$38,000.
You are required to calculate the following:
a) The contribution per unit towards the fixed costs of the organisation.
b) The number of units that would have to be produced to earn the organisation a profit of N$44,000.
c) The profit earned if the organisation sells 24,600 units.
d) The profit earned if the selling price is reduced to N$115 and the demand rises to 36,400 units sold.
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu