Reference no: EM132612881

SK Corporation has provided the following miscellaneous information regarding the operations of financial year 2020;

sh

Sales                                           10,000,000

Direct materials used                          4,000,000

Direct labour                                1,500,000

Fixed manufacturing overheads           2,000,000

Fixed selling and administration expenses 1,000,000

Gross profit                                        2,000,000

Net loss                                             500,000

Required

Question 1: Calculate:

(i) Factory cost of goods sold

(ii) Variable factory overhead

(iii) Variable selling and administration expenses

(iv) Contribution margin in in shillings

(v) Break-even point in shillings