Lewis Ltd produces and sells a single product. Each product sells for £50. Fixed costs are £550,000 per year and the break-even point of the business is 25,000 units. The profit each year is £440,000. Calculate: 1. The variable cost per unit. 2. The number of units sold each year. 3. The margin of safety (in units).

Lewis Ltd produces and sells a single product. Each product sells for £50. Fixed costs are £550,000 per year and the break-even point of the business is 25,000 units. The profit each year is £440,000. Calculate: 1. The variable cost per unit. 2. The number of units sold each year. 3. The margin of safety (in units).

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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