Reference no: EM132996719
Question - Financial information of a product manufactured and sold during last periods are as follows:
Unit sale price: $130
Direct Material Cost $40
Direct Labor Cost $22
Fixed Administration Expenses $50,000
Fixed Marketing Expenses $18,000
Manufacturing Overheads for the last three periods are accrued as follows:
$60,000 by 3,000 pieces of production,
$68,000 by 3,200 pieces of production,
$70,000 by 4,000 pieces of production.
For the current period it is expected to produce and sell 3,200 pieces.
Required -
1. Compute the breakeven points of the current period on quantity and amount.
2. Prepare the Full Costing Income Statement and Variable Costing Income Statement of the period.
3. A proposition of the marketing manager concerns about a 10% discount in the sale price which is expected an increase in the sales 20%, it is acceptable or not?
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