Edwards & co manaufactures teddy bears. The company's bears are in demand all year round and in the next financial year the sales manager plans to sell 12,00 teddies. The trainees management accountant has provided the following cost information for 1 unit of teddy bear. The selling is £10.00 and the variable cost will consist of direct, materials £1 .00 per unit, direct labout £5.00 per unit. The fixed cost for the year are expected to be £32,000. Required: Calculate contribution per unit The breakeven point in units The breakeven points in terms of sales value The level of sales quanity to reach a target profit of £20,000

Edwards & co manaufactures teddy bears. The company's bears are in demand all year round and in the next financial year the sales manager plans to sell 12,00 teddies. The trainees management accountant has provided the following cost information for 1 unit of teddy bear. The selling is £10.00 and the variable cost will consist of direct, materials £1 .00 per unit, direct labout £5.00 per unit. The fixed cost for the year are expected to be £32,000. Required: Calculate contribution per unit The breakeven point in units The breakeven points in terms of sales value The level of sales quanity to reach a target profit of £20,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

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