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Break Even Analysis, Cost Accounting
A company manufactures a single product. Estimated cost data regarding this product and other information for the product and the company are as follows:
Sales price per unit Rs.2000
Total variable production cost per unit Rs1100
Sales commission (on sales) 5%
Fixed costs and expenses:
Manufacturing overhead Rs 27,99,36,000
General and administrative Rs 18,66,24,000
Effective income tax rate 40%
How many units must the company sell in the coming year in order to reach its breakeven point? Show all workings. Recalculate the breakeven point for Sales price per unit Rs 2750 and Variable Cost per unit Rs 1350. Tax and Sales Commission rates remain unchanged
PLEASE SHOW THE WORKINGS.
Posted Date: 6/28/2012 10:25:48 AM | Location : United States
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Chrome-it, I would like to know the solution on this one.
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