Zcbex Ltd. produces a uniform type of article and has a capacity of producing 1,500 units per week of 48 hours. 

The following information shows the different elements of cost for three consecutive weeks of 48 hours each, when the output has changed from week to week:

Units Produced              Materials             Labour              Factory Overhead

     400                                    800                  1,600                      3,800

     500                                  1,000                   2,000                       4,000

      800                                  1,600                  3,200                      4,600

Required: 

Determine the selling price per unit when the weekly output will be 1,000 units and a profit of 10% on selling price will have to be made.

Answer rating: 100% (QA)

To analyze the cost behavior of Zcbex Ltd we need to calculate the variable and fixed cost components of each cost element We can use the highlow method to calculate the variable cost component ... View the full answer