FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profit of £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual total fixed costs equal £147, 200. Considering this information, which of the following statements is true? O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet. O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits. O c. Contribution per unit equals £46. O d. All the answers are true.arrow_forwardNictus Limited produces electrical blankets. The blankets are sold for R 750 per unit and variable costs per unit are R350. Total fixed costs amount to R 500 000. The company expects to produce and sell 3000 units. Total net profit is: A. R1 200000 B. R700000 C. R500000 D. R2 250000 Clear my - choicearrow_forwardHH Aaron Company is planning to sell Product X for $80 per unit. Variable costs are $50 a unit and fixed costs are $ 150,000. What must total sales be in order to break even? 800,000 500,000 400,000 900,000arrow_forward
- Blue, Inc. produces and sells a product that has a variable cost per unit of $6. The company's total fixed costs are $76,000. Blue is considering setting the sales price at $12 per unit. Approximately how many units does Blue need to sell to earn $2 net income per unit? O 17,667 O 17,850 16,000 O 19,000 None of the abovearrow_forwardSolomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solomon wants to earn a target profit of $3,600, how many units must be sold? 2,500 7,500 9,300 18,600 18,750arrow_forwardCan you help me with CVP Drill #14?arrow_forward
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