Dambo Limited has prepared the following cost analysis for 6 months of trading. Sales (units) 2 500 Price $ 1000 per unit Materials costs $ 200 per unit Labour costs $150 per unit Other variable costs $150 per unit Overheads $1,000,000 for 6 months operation a) Determine the break-even quantity, and Break even in R
Dambo Limited has prepared the following cost analysis for 6 months of trading. Sales (units) 2 500 Price $ 1000 per unit Materials costs $ 200 per unit Labour costs $150 per unit Other variable costs $150 per unit Overheads $1,000,000 for 6 months operation a) Determine the break-even quantity, and Break even in R
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 14E: A company has prepared the following statistics regarding its production and sales at different...
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Dambo Limited has prepared the following cost analysis for 6 months of trading.
Sales (units) 2 500
Price $ 1000 per unit
Materials costs $ 200 per unit
Labour costs $150 per unit
Other variable costs $150 per unit
Overheads $1,000,000 for 6 months operation
a) Determine the break-even quantity, and Break even in Rs
b) Identify the firm's margin of safety in units for the period.
c) Calculate the profit made during the period?
d) How much units the company should sell if the company wants to make a profit of
$ 500,000 for the next six months. ?
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