ANSWER ALL QUESTIONS Botswana diaries (Pvt) Ltd, sells a single product which has the following...

70.2K

Verified Solution

Question

Accounting

ANSWER ALL QUESTIONS

Botswana diaries (Pvt) Ltd, sells a single product which has the following information;

Price per unit

P

Price per unit

P

Selling Price

120

Direct Material

22

Direct Labour

36

Variable overhead

14

Fixed Overhead

12

Total cost

84

Net profit

36

The fixed overhead in total amounted to P24 000. Budgeted sales for next month are 2 200 units.

You are required to calculate:

  1. The breakeven point, in sales units per month (5 marks)
  2. The margin of safety for next month (5 marks)
  3. The budgeted profit for next month (5 marks)
  4. The sales required to achieve a profit of P96 000 in a month (5 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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students