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I have calculated the breakeven labour sales for a service departments workshop (Motor Retail)
I would like to know how to calculate the breakeven labour hours to be sold
Your assistance is most appreciated
Breakeven calculations ask not examined until Paper PM. They were removed from the Paper MA (was Paper F2) syllabus many years ago.
(And even if it were Paper PM, you have not given enough information from the question to be able to answer you!)
Thanks for the reply.
The Fixed Costs is R 525,000 , The GP % is 60% . The Labour Sales breakeven is
R 825,000. The Available hours is 9 hours per day, but with lunch and tea breaks etc the max hrs available to work on a job is 8 hours. The number of technicians is 5Please advise if you need any additional information for you to assist me
As I replied before, this is not in the syllabus for Paper MA and therefore this question cannot be asked in the exam.
Also, ‘labour sales breakeven’ does not mean anything!! 🙂
I do not know where on earth you have found this question, but you should be using a Revision Kit from one of the ACCA approved publishers. They are full of exam-standard questions that are in the syllabus for Paper MA.
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