At present the selling price of the Sandals is £5.75 and it incurs the following variable costs:  The fixed costs of production are £180,000 and the company currently sells 90,000 units.    Direct Labour £1.35  Direct Materials £1.75  Other Direct costs £0.40    Calculate the break-even point (in units and revenues) Calculate the profit made on sales of 90,000 units.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
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At present the selling price of the Sandals is £5.75 and it incurs the following variable costs: 

The fixed costs of production are £180,000 and the company currently sells 90,000 units. 

 

Direct Labour £1.35 

Direct Materials £1.75 

Other Direct costs £0.40 

 

Calculate the break-even point (in units and revenues) Calculate the profit made on sales of 90,000 units. 

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