Reference no: EM131076013
Four companies calculate their fixed costs per period of production, and their variable costs per unit of product during the period. Each company sets a selling price and calculates the number of units of product that must be manufactured and sold in order to break even.They tabulate their results, as follows:
Company A Company B Company C Company D
Fixed costs per period 1,200,000 1,170,000 ? 2,960,000
Variable costs per unit of product 720 210 925 ?
Selling price 780 249 1,099 349
Number of units for break even 20,000 ? 22,250 80,000
Company A has fixed costs per period of £1,200,000, variable costs per unit of £720, and sets a selling price of £780. They calculate the number of units for break even as 20,000 units.
Calculate:
(a) The profit made by company A on production and sales of 28,000 units per period.
(b) The number of units for break even for company B.
(c) The fixed costs per period of company C.
(d) The variable costs per unit of product of company D
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