Question 1
Solution
Variable cost per unit = $1.95 per unit
Working
|
Total cost |
$ 378,000.00 |
| Less:
Fixed cost |
$ 300,000.00 |
| Total
variable cost |
$ 78,000.00 |
| Variable
cost per unit (78000/40000) |
$ 1.95
per unit |
Question 2
Solution
Units to be sold = 15000 units
Working
|
A |
Sale Price per unit |
$
325.00 |
| B |
Variable
Cost per Unit |
$
225.00 |
| C=A x
B |
Unit
Contribution |
$
100.00 |
| D |
Total
Fixed cost + desired profit |
$ 1,500,000.00 |
|
E=D/C |
Units to
be sold |
15,000 |
