20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

cvp analysis

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
August 28, 2017 at 6:18 am #403844
adarsh1997
Participant
- Topics: 646
- Replies: 282
Hi John!
Need your help for a question in the kaplan kit.
VC/ unit of making in house $14
Directly attributable FC $28,800
Delivery cost per unit $ 0.20
Buy in cost $ 15.60
What is the break even in units for this decision?
1. The are actually the workings in the book, but with no explanation provided.
2. Could you please make it clear for me?
3. The answer is 16,000 units
August 28, 2017 at 8:03 am #403872
John Moffat
Keymaster
- Topics: 57
- Replies: 54718
The extra cost of buying in is 15.60 + 0.20 – 14 = 1.80 per unit.
Therefore the breakeven = 28,800 / 1.80 = 16,000.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘cvp analysis’ is closed to new replies.