The following data relates to a company's operating budget for its next operating year: Sales price per unit (E) 12 Sales volume (units) 15,000 Costs: Materials (E) 52,500 Labour (E) 33,800 Energy (E) 101.000 Depreciation (E) 105,000 The budget has been prepared using the following assumptions: Materials costs are variable. Labour costs are semi-variable with a foxed element of £15.000. Depreciation is a fixed cost. An allowance for an energy price increase of 12% has already been included in the energy costs. The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by 11% The sales volume will increase by 11% The rise in the energy prices should be revised to 3% What will be the company's new selling price per unit for the year?

The following data relates to a company's operating budget for its next operating year: Sales price per unit (E) 12 Sales volume (units) 15,000 Costs: Materials (E) 52,500 Labour (E) 33,800 Energy (E) 101.000 Depreciation (E) 105,000 The budget has been prepared using the following assumptions: Materials costs are variable. Labour costs are semi-variable with a foxed element of £15.000. Depreciation is a fixed cost. An allowance for an energy price increase of 12% has already been included in the energy costs. The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by 11% The sales volume will increase by 11% The rise in the energy prices should be revised to 3% What will be the company's new selling price per unit for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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