Compute break even point in units of product

Reference no: EM13298646

A company produces only one product. Normal capacity is 20000 units per year and the unit sales price is Rs.5 relevant costs are:

	Unit Variable Cost	Total Fixed Cost
Materials	Rs.1.50
Director labour	1.20
Factory Overhead	0.45	Rs.15000
Marketing expenses	0.35	5000
Administrative expenses		6000

Required:

Compute (2) break even point in units of product (2) break even point in sales (3) the number of units product that must be produced and sold to achieve a profit of Rs.10000 and (4) the sales revenue required to achieve a profit of Rs.10000.

Reference no: EM13298646

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