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Calculate the total budgeted variable costs per unit

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Reference no: EM133183371

Question - Aren plc has prepared the following budget for one of its products, the Gooner, for the forthcoming year:

Selling price per unit £20.50

Variable materials and labour costs per unit £7.50

Selling and distribution costs per unit £1.30

Production overheads (75% of which are fixed) £1,600,000

Fixed selling and distribution costs £190,000

Production and sales 160,000 units

Required -

a. Calculate the total budgeted variable costs per unit.

b. Calculate the budgeted contribution per unit.

c. Calculate the break-even sales volume (in whole units) and break-even sales revenue.

Reference no: EM133183371

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