[Determination of Selling Price]Question 18: The following data are obtained from the records of a factory:Sales 4,000 units @ 25 eachMaterial consumed-Variable overheadsLabour chargesFixed overheadsNet Profit1,00.000240.00010,00020,00088.00012.000selling which the company will neither lose nor gain anything: (a) theCalculate: the number of unitssales needed to earn a profit of 20% on sales. (ii) the extra units which should be sold to obtain the presentprofit if it is proposed to reduce the selling price by 20% and 25%; (iv) the selling price to be fixed to bringdown its Break-even Point to 500 units under present conditions.

[Det Question 18: The following data are obtained from the records of a factory: Sales 4,000 units @ 25 each- Material consumed. Variable overheads Labour charges Fixed overheads Net Profit 1,00.000 240.000 10,000 20,000 12.000 Calculate: the number of units by selling which the company will neither lose nor gain anything: (a) the sales needed to earn a profit of 20% on sales. (iii) the extra units which should be sold to obtain the present profit if it is proposed to reduce the selling price by 20% and 25%; (iv) the selling price to be fixed to bring down its Break-even Point to 500 units under present conditions.

[Det Question 18: The following data are obtained from the records of a factory: Sales 4,000 units @ 25 each- Material consumed. Variable overheads Labour charges Fixed overheads Net Profit 1,00.000 240.000 10,000 20,000 12.000 Calculate: the number of units by selling which the company will neither lose nor gain anything: (a) the sales needed to earn a profit of 20% on sales. (iii) the extra units which should be sold to obtain the present profit if it is proposed to reduce the selling price by 20% and 25%; (iv) the selling price to be fixed to bring down its Break-even Point to 500 units under present conditions.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...

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