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

Unit variablecost Total fixed cost

Materials Rs.1.00

Directlabor 1.20

Factoryoverhead 0.50 Rs.15000

Marketingexpenses 0.30 5000

Administrativeexpenses 6000

Required: Compute (2) breakeven point in units of product (2) break even point in sales (3) the number of unit product that mustbe 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.:- M9797103

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