alysar2005
Oct 11, 2008, 12:31 AM
The unit production costs at a normal volume of 2000 units per month are :
Direct materials $15.00 per unit
Direct labour $28.00 per unit
Factory overhead $9.00 per unit
The factory overhead includes fixed overhead costs of $4 per units.
Variable selling expenses are $1 per unit and fixed selling and administration expenses total $2000 per month.
The unit selling price is $60.
Reuired:
a. Calculate expected monthly profit at the normal volume of 2000 units.
b. Determine the break-even sales volume in units and sales dollars.
c. Calculate the monthly sales volume in units and sales dollars to achieve net profit after tax of $14000 if the income tax rate is 30%.
Direct materials $15.00 per unit
Direct labour $28.00 per unit
Factory overhead $9.00 per unit
The factory overhead includes fixed overhead costs of $4 per units.
Variable selling expenses are $1 per unit and fixed selling and administration expenses total $2000 per month.
The unit selling price is $60.
Reuired:
a. Calculate expected monthly profit at the normal volume of 2000 units.
b. Determine the break-even sales volume in units and sales dollars.
c. Calculate the monthly sales volume in units and sales dollars to achieve net profit after tax of $14000 if the income tax rate is 30%.