Q
a Chiyeyeye full cost statements appears as follows:
Indirect expenses
Chiseche budgets to make and sell pieces of furniture's during the financial year. If the selling
price per furniture is and variable cost per unit would be
Looking ahead to the financial year ending march the directors of chiyeyeye linited
are faced with a budgeted loss of
Budgeted units
Selling price per uit MMW
Variables costs per umit
Fixed cost ZMW
The directors would like to aim for a profit of Various proposals have been put
forward, none of which require a change in the budgeted levels of fixed costs:
a Rechuce the selling price per umit by percent
b Increase the selling price of each umit by percent