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 costs are:

                                                       Unit variablecost                 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 mustbe produced and sold to achieve a profit of Rs.10000 and (4) the sales revenue required to achieve a profit of Rs.10000.

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Accounting Basics: Breakeven point in units of product
Reference No:- TGS0555072

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