The details of cost and sales of a firm at an output level of 60,000 units are as follows: Sh. Sales 150,000 Raw materials 66,000 Labor 33,000 Semi-variable overheads 30,000 Fixed overheads 11,000 Profit 10,000 Semi-variable overheads include fixed cost of Sh.12,000. If the firm wants to maintain the profits at a present level of Sh.10,000, what selling price should be fixed at the output level of 110,000 units? Explain clearly
The details of cost and sales of a firm at an output level of 60,000 units are as follows: Sh. Sales 150,000 Raw materials 66,000 Labor 33,000 Semi-variable overheads 30,000 Fixed overheads 11,000 Profit 10,000 Semi-variable overheads include fixed cost of Sh.12,000. If the firm wants to maintain the profits at a present level of Sh.10,000, what selling price should be fixed at the output level of 110,000 units? Explain clearly
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The details of cost and sales of a firm at an output level of 60,000 units are as follows: Sh. Sales 150,000 Raw materials 66,000 Labor 33,000 Semi-variable overheads 30,000 Fixed overheads 11,000 Profit 10,000 Semi-variable overheads include fixed cost of Sh.12,000. If the firm wants to maintain the profits at a present level of Sh.10,000, what selling price should be fixed at the output level of 110,000 units?
Explain clearly
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