(d) Apple Ltd makes and sells a single product, for which variable costs are follows: Direct materials                               £20 Direct labour                                    £16 Variable production overhead     £12                                                             £48 The sales price is £60 per unit, and fixed costs per annum are £136,000. The company wishes to make a profit of £32,000 per annum. Required: Determine the sales required to achieve this profit.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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(d) Apple Ltd makes and sells a single product, for which variable costs are

follows:

Direct materials                               £20

Direct labour                                    £16

Variable production overhead     £12

                                                            £48

The sales price is £60 per unit, and fixed costs per annum are £136,000. The

company wishes to make a profit of £32,000 per annum.

Required:

Determine the sales required to achieve this profit.

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