I need help with my account practice quiz that I failed before. It's about Cost...
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I need help with my account practice quiz that I failed before. It's about Cost Volume Profit Analysis includes a theory question related to CVP.
Bedok Engineering Pte Ltd manufactures and sells water filters for domestic household use. Price and cost data are as follows: $25.00 Selling price per filter Variable costs per filter: Direct material Direct labour Manufacturing overhead Selling costs Total variable costs per filter $10.50 5.00 3.00 1.30 $19.80 Annual total fixed costs: Manufacturing overhead Selling and administrative Total fixed costs $192,000 276,000 $468,000 Forecast annual sales (120,000 filters) $3,000,000 Required: a) What is Bedok's break-even point in sales revenue? b) How many filters does Bedok need to sell to make a profit of $500,000? c) Explain how Bedok could use cost-volume-profit (CVP) analysis to analyse the impact of increasing variable selling costs and cutting fixed administrative costs
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