Reference no: EM133187089
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 -
1. Calculate the total budgeted variable costs per unit.
2. Calculate the budgeted contribution per unit.
3. Calculate the break-even sales volume (in whole units) and break-even sales revenue.
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