Calculate the total budgeted variable cost per bottle

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Reference no: EM133921572

Problem

Island Gear Ltd manufactures and sells custom-designed water bottles called CoolQuenchers, popular among tourists. The company has prepared the following budget for the upcoming financial year. Selling price per bottle: £25. Variable materials and labor costs per bottle: £6.50. Variable selling and distribution costs per bottle: £2.50. Production overheads: £650,000 (70% of which are fixed). Fixed selling and distribution costs: £90,000. Expected production and sales volume: 100,000 bottles.

Task

A. Calculate the total budgeted variable cost per bottle.
B. Calculate the budgeted contribution per bottle. Get the instant assignment help.
C. Calculate the break-even sales volume and break-even sales revenue, using bottles as the unit of sale.

Reference no: EM133921572

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