Breakeven point in units of product


A company produces only one product. Normal capacity is 0000units per year and the unit sales price is Rs.5 relevant costsare:

                                                       Unitvariablecost                 Total fixed cost

Materials                                            Rs.1.00

Directlabor                                         1.20

Factoryoverhead                                0.50                                   Rs.15000

Marketingexpenses                            0.30                                      5000

Administrativeexpenses                                                                   6000

Required: compute (2) breakeven point in units of product (2) break even point in sales (3) the number of unit product that must be produced and sold to achieve a profit of Rs.10000 and (4) thesales revenue required to achieve a profit of Rs.10000.

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Accounting Basics: Breakeven point in units of product
Reference No:- TGS0555052

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