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Calculate the percentage of distribution expenses

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Reference no: EM131075910

A certain product X  has variable costs per unit of product of £150, and fixed costs of £1,952,000 per period. Unit costs of production during a trading period are as follows:

Components                         57

Labour                                 80

Production overheads            75

Distribution expenses            60

The cost of components varies directly with the number of units produced. 60% of the labour costs vary directly with the number of units produced.The production overheads do not vary irrespective of how many units are produced.

(a) Calculate the percentage of distribution expenses that vary directly with the number of units produced.

(b) Calculate the fixed costs per unit.

(c) Calculate the number of units produced in the trading period.

Reference no: EM131075910

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