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

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shram says

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

It is per unit (it could not possibly be the total cost 馃檪 )

onel says

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

John Moffat says

Yes – your approach is fine 馃檪

onel says

Thanks soo much.

kweediie says

hi john

in question 5.

we see that the solutions says (25 X 100,000) gives 2,500,000 how possible is that sir

John Moffat says

But 100,000 x $25 does equal $2,500,000 !!

kweediie says

apologies my error