A business in Nigeria has the following information. What is their break even in units for the period?Sales £10Variable costs: Materials cost£2.5 Labour cost£2.5Fixed costs: Advertisement£10,000A.3500B.7000C.4000D. 2000

Breakeven Point is the point of sales revenue where the firm makes no profit or loss. It is where…

Answered: £10 Variable costs: Materials cost…

Business

Accounting

£10 Variable costs: Materials cost £2.5 Labour cost £2.5 Fixed costs: Advertisement £10,000 A.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 19E: A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per...

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

A business in Nigeria has the following information. What is their break even in units for the period?

Sales	£10
Variable costs: Materials cost	£2.5
Labour cost	£2.5
Fixed costs: Advertisement	£10,000

3500

7000

4000

2000

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