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Sales $20,000
Sales units 2,000
Production units 2,100
Direct material cost per unit $1.50
Labour cost per unit $2.00
Total fixed overheads $6,000
Budgeted fixed overheads were $6500 and budgeted production was 2,000 units.
What was the profit for last month for Flapper Ltd?
A $7,000
B $8,000
C $5,000
D $9,000- Topics: 0
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Is the answer 7000?
Hello i think the correct is the nswer A, 7000
profit = tot contrib. – fixed OH
price for unit 10 = 20000/2000
contribution 10 -1.5 – 2 = 6.5 TOT contrib. = 6.5*2000 = 13000
PROFIT 13000-6000= 7000
bye
alf- Topics: 0
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Alfo is right !
Answer is 7000
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