The details of cost and sales of a firm at an output level of 60,000 units are as follows: Sh. Sales 150,000 Raw materials 66,000 Labor 33,000 Semi-variable overheads 30,000 Fixed overheads 11,000 Profit 10,000 Semi-variable overheads include fixed cost of Sh.12,000. If the firm wants to maintain the profits at a present level of Sh.10,000, what selling price should be fixed at the output level of 110,000 units? Explain clearly
The details of cost and sales of a firm at an output level of 60,000 units are as follows: Sh. Sales 150,000 Raw materials 66,000 Labor 33,000 Semi-variable overheads 30,000 Fixed overheads 11,000 Profit 10,000 Semi-variable overheads include fixed cost of Sh.12,000. If the firm wants to maintain the profits at a present level of Sh.10,000, what selling price should be fixed at the output level of 110,000 units? Explain clearly
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...
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The details of cost and sales of a firm at an output level of 60,000 units are as follows: Sh. Sales 150,000 Raw materials 66,000 Labor 33,000 Semi-variable overheads 30,000 Fixed overheads 11,000 Profit 10,000 Semi-variable overheads include fixed cost of Sh.12,000. If the firm wants to maintain the profits at a present level of Sh.10,000, what selling price should be fixed at the output level of 110,000 units?
Explain clearly
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