Management Accounting question Auto Robot Ltd which manufactures two products P & Q has provided the following information. P (shs) Q (shs) Selling price per unit 10 12 Variable cost per unit 2 8 Fixed cost 50,000 34,000 Required:- i) Calculate the B. E. P. of each product in units and in shs. ii) Calculate the margin of safety if budgeted sales are 10,000 units each iii) Compute the profit of each product if sales in units are 20% above the B. E. P.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Management Accounting question
Auto Robot Ltd which manufactures two products P & Q has provided the following information.
P (shs) Q (shs) Selling price per unit 10 12
Variable cost per unit 2 8.
Fixed cost 50,000 34,000
Required:-
i) Calculate the B. E. P. of each product in units and in shs.
ii) Calculate the margin of safety if budgeted sales are 10,000 units each
iii) Compute the profit of each product if sales in units are 20% above the B. E. P.
Transcribed Image Text:Management Accounting question Auto Robot Ltd which manufactures two products P & Q has provided the following information. P (shs) Q (shs) Selling price per unit 10 12 Variable cost per unit 2 8. Fixed cost 50,000 34,000 Required:- i) Calculate the B. E. P. of each product in units and in shs. ii) Calculate the margin of safety if budgeted sales are 10,000 units each iii) Compute the profit of each product if sales in units are 20% above the B. E. P.
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