COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Use these figures to calculate profit:fixed costs $ 14, 750, SP $ 9 per unit:VC per unit $ 4; Units made and sold 3, 500.
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$ 16, 750
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-$ 750
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$ 2, 750
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-$ 2, 750
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Explanation:
Detailed explanation-1: -Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost.
Detailed explanation-2: -In some cases, businesses only list their total costs and variable costs per unit. You can use this information to determine your fixed costs with the formula: Fixed Cost = Total Cost – (Variable Cost Per Unit * Units Produced).
Detailed explanation-3: -90000 and variable cost to sales is 75%, contribution is: Rs. 67500 Rs.
There is 1 question to complete.