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SK Corporation has provided the following miscellaneous information regarding the operations of financial year 2020;
sh
Sales 10,000,000
Direct materials used 4,000,000
Direct labour 1,500,000
Fixed manufacturing overheads 2,000,000
Fixed selling and administration expenses 1,000,000
Gross profit 2,000,000
Net loss 500,000
Required
Problem 1: Calculate:
(i) Factory cost of goods sold
(ii) Variable factory overhead
(iii) Variable selling and administration expenses
(iv) Contribution margin in in shillings
(v) Break-even point in shillings
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