wing financial information is available in Table Q2. Current output at 30,000 hampers per year, though the fim has the capacity to ampers per year. Table 2 COST ELEMENT ale price nd material costs -in components ads PRICE (RM) 80 15 25 800,000 nd calculate the fixed cost.

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter2: Building Blocks Of Managerial Accounting
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Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
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(a)
Kimberley-Clark makes luxury hampers for sale in a chain of high-class department
stores. The following financial information is available in Table Q2. Current output
and sales are set at 30,000 hampers per year, though the fim has the capacity to
produce 50,000 hampers per year.
Table 2
COST ELEMENT
PRICE (RM)
1. Wholesale price
2. Labor and material costs
3. Bought-in components
4. Overheads
80
15
25
800,000
(i)
Identify and calculate the fixed cost.
(11)
Identify and calculate the variable cost.
(111)
Calculate the break-even quantity for the firm.
(iv)
Calculate the level of profit the firm is making.
Transcribed Image Text:(a) Kimberley-Clark makes luxury hampers for sale in a chain of high-class department stores. The following financial information is available in Table Q2. Current output and sales are set at 30,000 hampers per year, though the fim has the capacity to produce 50,000 hampers per year. Table 2 COST ELEMENT PRICE (RM) 1. Wholesale price 2. Labor and material costs 3. Bought-in components 4. Overheads 80 15 25 800,000 (i) Identify and calculate the fixed cost. (11) Identify and calculate the variable cost. (111) Calculate the break-even quantity for the firm. (iv) Calculate the level of profit the firm is making.
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