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CVP analysis and short term decision question

This topic has 2 replies, 2 voices, and was last updated 1 year ago by Ken Garrett.

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September 19, 2021 at 3:24 pm #636019
khulan2002
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- Topics: 13
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The budgeted data of a company is given below.
Per unit ($)
Material 36
Labour 22
VOH 20
Selling price 120
Budgeted production and sales are 5,000 units and fixed costs are $60,000.
1. What is the break-even point?
2. What is the total profit?
3. What is the margin of safety?
September 20, 2021 at 6:15 am #636032
Ken Garrett
Keymaster
- Topics: 10
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Contribution per unit = 120 – 36 – 22 – 20 = 42.
You should be able to solve these basic questions easily if you read Chapter 8 of our MA2 notes.
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