COST ACCOUNTING
TRANSFER PRICING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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PT Sansan has a total fixed cost of $150,000 and a variable cost of $9 per unit. If the selling price per unit is $12, what is the sales break-even in dollars?
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$200.000
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$450.000
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$480.000
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$600.000
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Explanation:
Detailed explanation-1: -First, add up all of your production costs. Make sure to be clear about which costs are fixed and which ones are variable. Take your total cost of production and subtract your variable costs multiplied by the number of units you produced.
Detailed explanation-2: -90000 and variable cost to sales is 75%, contribution is: Rs. 67500 Rs.
Detailed explanation-3: -First, add up all production costs. Note which of those costs are fixed and which ones are variable. Take your total cost of production and subtract the variable cost of each unit multiplied by the number of units you produced. This will give you your total fixed cost.
There is 1 question to complete.