Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Sekeseke manufacturing company sold 250,000 units of its product called “CHAIN” at N20 per unit. The variable costs of N15 per unit consist of manufacturing cost of N12 and selling expenses of N3. The fixed costs incurred evenly throughout the year amounted to N486,000 consisting of administrative overhead of N300,000 and selling overheads of N186,000.
You are required to calculate:
i. The breakeven point in Units and Naira (4 Marks)
ii. The contribution/sales ratio (2 Marks)
iii. The number of units that must be sold to earn a profit of N75,000 (2 Marks)
iv. The number of units that must be sold to earn an after-tax profit of N112,000, if the tax rate is 30% (3 Marks)
v. The number of units required to break even if the variable cost increased by 6% and fixed cost by 2.5% (4 Marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Sekeseke manufacturing company sold 250,000 units of its product called “CHAIN” at N20 per unit. The variable costs of N15 per unit consist of manufacturing cost of N12 and selling expenses of N3. The fixed costs incurred evenly throughout the year amounted to N486,000 consisting of administrative overhead of N300,000 and selling overheads of N186,000.
You are required to calculate:
i. The breakeven point in Units and Naira (4 Marks)
ii. The contribution/sales ratio (2 Marks)
iii. The number of units that must be sold to earn a profit of N75,000 (2 Marks)
iv. The number of units that must be sold to earn an after-tax profit of N112,000, if the tax rate is 30% (3 Marks)
v. The number of units required to break even if the variable cost increased by 6% and fixed cost by 2.5% (4 Marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
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