A company have the following data: Variable cost/unit Total fixed cost/year Number of units produced and consumed annually $400 O a. $700/unit O b. $460/unit O c. $860/unit O d. $805/unit $150,000 500 units Average investment capital Desired ROI What is the selling price calculated by marginal costing approach? $400,000 20%

A company have the following data: Variable cost/unit Total fixed cost/year Number of units produced and consumed annually $400 O a. $700/unit O b. $460/unit O c. $860/unit O d. $805/unit $150,000 500 units Average investment capital Desired ROI What is the selling price calculated by marginal costing approach? $400,000 20%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 17E

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PE 1. Use the following economic data to answer the numbered questions: Total fixed costs P1.8M Unit selling price P80.00 Unit variable cost P56.00 Indicate the effect on the following by one unit increase in sales volume: 1. Breakeven units Total peso sales 3. Total contribution margin 4. Operating profit 5. Total costs 2.
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The following information relates to the operations of a company; cost per unit from supplier- GH¢80, variable cost per unit GH¢40 and total fixed cost of GH¢300000. The company determines its selling price by adding a margin of 20%. What is the breakeven quantity?
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