PLEASE SOLVE ONLY PART (C) OF THE QUESTION ONLY PART C ! ...
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Accounting
PLEASE SOLVE ONLY PART (C) OF THE QUESTION
ONLY PART C !
B-XYZ Manufacturing Company has fixed costs $240,000, it sells its only product at $50 per unit. For every $1 generated by the sale of their product, they have $0.20 that contributes to fixed costs and profit. Required: 1. Calculate the variable cost per unit. 2. Assume that the company plans to sell 20,000 units this year. In your opinion, would the Company be better off with this plan? Support your answer with necessary calculations 3. How many units the company needs to sell to start making profit? Why? Prove your answer. (12.5 marks) C- The calculation of cost of goods sold does not differ between merchandising companies and manufacturing companies. Discuss this statement and support your answer with a numerical examples
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