Q2] (3 Marks) Break Even Formula -based: A company manufactures LED Products has the following data for year 2020: Fixed Cost $30,000 Variable Cost $40,000|| Profit Sales Find CM Ratio, B.E.P. and MOS%. $10,000 $100,000

Q2] (3 Marks) Break Even Formula -based: A company manufactures LED Products has the following data for year 2020: Fixed Cost $30,000 Variable Cost $40,000|| Profit Sales Find CM Ratio, B.E.P. and MOS%. $10,000 $100,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 3E

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

Q2] (3 Marks) Break Even Formula -based:
A company manufactures LED Products has the following data for year 2020:
Fixed Cost
$30,000
Variable Cost $40,000||
Profit
S10,000
$100,000
Find CM Ratio, B.E.P. and MOS%.
Sales

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