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A company produces only one product. Normal capacity is 0000 units per year and the unit sales price is Rs.5 relevant costsare:

Unitvariablecost Total fixed cost

Materials Rs.1.00

Direct labor 1.20

Factory overhead 0.50 Rs.15000

Marketing expenses 0.30 5000

Administrative expenses 6000

Required: compute (2) breakeven point in units of product (2) even point in sales (3) the number of unit product that must be produced and sold to achieve a profit of Rs.10000 and (4) the sales revenue required to achieve a profit of Rs.10000.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797120

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