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How many units would ganges have to sell

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Reference no: EM132793564

Question - Ganges Ltd has developed the following data for the 10,000 units of vaccine they hope to produce and sell in the following month:

Direct materials $50,000

Direct labour $25,000

Variable overhead $40,000

Fixed overhead $15,000

Variable selling & admin expenses $24,000

Fixed selling & admin expenses $16,000

Required -

a) At sales price of $19.00 per unit, how many units would Ganges have to sell in order to break-even?

b) At a sales price of $21.50 per unit, how many units would Ganges have to sell in order to produce a profit of $20,000?

c) If 8,000 units were sold, what price would Ganges have to charge in order to produce a profit of $21,000?

d) What does cost- volume-profit ( CVP) analysis mean?

Reference no: EM132793564

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