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A company has fixed costs of $5000. Sales for 600 units have been made. The budgeted unit details are
Selling price $ 26Varible cost $19Fixed cost $ 2
Profit $ 5
At what minimum price should an order for 200 additional units be accepted in order to break even.
A $19 B $23 C $24 $ 26
Q The manufacture of a product involves two processes. The costs for the processes for one month are given.
Process one Process 2
Material used $4000Additional materials $ 2000Other variable costs $5000 $1000Fixed costs $3000 nil
There were no opening or closing stocks of materials or work in progress at the beginning or end of the month. All process 1 production was passed to process 2 in the month.
What is the cost of the materials used in process 2 during the month?A $2000 B $6000 C $12000 D $14000
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