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XYZ Ltd is a company manufacturing and selling Cabinets. The estimated operating income of the company is presented herewith below:
Total
$
Units 500 Nos
Sales 470000
Less: Cost of Goods Sold
Total cost of goods sold 230000
Gross profit 240000
Selling Expenses
Total Selling Expenses 77000
Profits before Admin expenses 163000
Admin Salaries 40000
Other Admin expenses 60000
Total Admin Expenses 100000
Net Operating Income 63000
problem 1. What is cost average revenue and cost per unit and what is the net average earning for each cabinet?
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