- This topic has 1 reply, 2 voices, and was last updated 2 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Selling price
Budgeted output is 16000 and budgeted contribution is 14$ per unit. Budgeted profit is 140000 and budgeted variable cost are equal to fixed costs, what is the selling price per unit?
Answer 14×16000= 224000 then 140000+224000=364000
364000/16000= 22.75
I am confused how do you find selling price per unit with the above data
The budgeted contribution = 16,000 x $14 = $224,000.
Profit = contribution – fixed costs, and therefore the fixed cost is 224,000 – 140,000 = $84,000.
Therefore the variable cost also equals $84,000.
Contribution = sales less variable cost, and therefore the sales = 140,000 + 84,000 = $224,000.
There are 16,000 units and therefore the selling price per unit = 224,000 / 16,000 = $14.
Again, why are you attempting questions for which you do not have the answers?