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Determine the direct product cost per unit product

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Reference no: EM132947969

Problem - A company produces a chemical at a rate of 1000 tons/year with a planned sale price of 0.8 TL / kg. The fixed cost is 60000 TL/year and direct production is 5.5 x 106 TL/year at full capacity.

a) Determine the direct product cost per unit product (TL /kg).

b) Find the breakeven capacity of the company for this product.

c) Draw breakeven chart according to determined results in (ii).

d) Calculate the new breakeven point if the price of the product decreased to 0.5 TL/kg.

Reference no: EM132947969

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