11. A company produces a product and sells 32,000 units a month at a selling...
80.2K
Verified Solution
Link Copied!
Question
Accounting
11. A company produces a product and sells 32,000 units a month at a selling price of 32. Direct material cost is 13 per unit and direct labour cost is 10 per unit of output. The total fixed cost is 164,880. The factory has a maximum production capacity of 40,000 units. (Must show all calculation for full marks) (i) Calculate the break-even level of output. (2 marks) Answer: (ii) Calculate the margin of safety ratio? (2 marks)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
