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In question 2 , Is there a missing of per unit in variable cost ?
Otherwise it may then refer to total variable cost.
It is per unit (it could not possibly be the total cost 馃檪 )
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
Yes – your approach is fine 馃檪
Thanks soo much.
hi john
in question 5.
we see that the solutions says (25 X 100,000) gives 2,500,000 how possible is that sir
But 100,000 x $25 does equal $2,500,000 !!
apologies my error