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Calculate the break-even point in unit and monetary value

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Reference no: EM132987761

Problem - ABC Technology makes tablet computers which it sells for £52 per unit. The company is currently planning for the production and marketing of the product. To meet this purpose, the coat accountant has provided the following cost information relating to the product:

Manufacturing:

Variable materials £7 per unit of tablet

Variable labour £12 per unit of tablet

Either variable costs £7 per unit of tablet

Fixed cost £30,000 per year

Administration and selling

Variable cost £6 per unit of tablet

Fixed coat £50,000 per year

Required -

Brie?y explain the term 'break-even point'.

Calculate the break-even point in unit and monetary value.

Calculate the number of computers needed to be produced and sold to make a pro?t of £15,000.

Reference no: EM132987761

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