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April 28, 2020 at 4:33 am
In question 2 , Is there a missing of per unit in variable cost ? Otherwise it may then refer to total variable cost.
John Moffat says
April 28, 2020 at 9:19 am
It is per unit (it could not possibly be the total cost 🙂 )
February 21, 2019 at 10:04 am
hi sir , in question 4, i used a different approach but i arrived at the same answer. kindly advice if it right to use this. 1. found total Total variable cost= 8.40 +3.60+ 1.44= 13.44 2. contribution for x , which is sales less total variable cost = 24-13.44 = 10.56 3.found budgeted fixed cost for both x and y = (2.88×10,000) +(2.4 x 12500) = 58800 4 Fixed cost when producing x only is 58800 – 6000 = 52800 5.if b represents the total number of units that is needed to be produced inorder to get a target profit of 144,000 then (10.56 x b) – 52800 = 144000 10.56b = 144000+ 52800 10.56b= 196800 b = 196800/10.56 b=18636.6 units of x produced
February 21, 2019 at 4:04 pm
Yes – your approach is fine 🙂
February 21, 2019 at 4:45 pm
Thanks soo much.
February 12, 2019 at 8:36 pm
hi john in question 5. we see that the solutions says (25 X 100,000) gives 2,500,000 how possible is that sir
February 13, 2019 at 8:47 am
But 100,000 x $25 does equal $2,500,000 !!
February 13, 2019 at 10:17 am
apologies my error
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