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Cost Example

breakeven and how to achieve profit
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0% found this document useful (0 votes)
11 views2 pages

Cost Example

breakeven and how to achieve profit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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sales 260000

Fixed manufacturing 25000


Fixed marketing and adm. 15000
Total fixed 50000
Total variable 140000
unit price 80
Unit variable manufacturing 44
Unit variable marketing 4

a) Monthly profit when sales 260000 Sales 260000


70000 (-) VC 140000
(-) FC 50000
PROFIT 70000

B) No. of units sold that would produce operating profit of 20000 Units to achieve profit = (FC+profit)/C

c) sales in dollars to earn operating profit 10000 Revenue to achieve profit = (FC+prof

d) No. of units sold in the month of april No. of units sold = Sales / unit price =

e) No. of units sold that would produce operating profit 10% of sales Sales - vc - fc = profit
80 Q - 48Q - 50000 = 8Q
hieve profit = (FC+profit)/Cmu = (50000+20000)/(80-48) =2187

o achieve profit = (FC+profit)/Cm% = (50000+10000)/((80-48)/80) =150000

s sold = Sales / unit price = 260000/80 =3250 unit

- 50000 = 8Q  80 Q - 48Q - 8Q = 50000


Q = 2083 unit

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