Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > HR Management Posted 20 Nov 2017 My Price 8.00

Super Bright Company

The Super Bright Company sells two types of washing machines — a deluxe model and a standard model. The financial controller has prepared the following information based on the sales forecast for the

 

Deluxe machine

Standard machine

Total

Sales volume (units)

1200

600

  
 

£

£

£

Unit selling price

300

200

  

Unit variable cost

150

110

  

Unit contribution

150

90

  

Total sales revenues

360000

120000

480000

Less: Total variable cost

180000

66000

246000

Contribution to direct

      

and common fixed costs

180000

54000

234000

Less: Direct avoidable fixed costs

90000

27000

117000

Contribution to common fixed costs

90000

27000

117000

Less common (indirect) fixed costs

    

39000

Operating profit

    

78000

The common fixed costs relate to the costs of common facilities and can only be avoided if neither of the products is sold. The managing director is concerned that sales may be less than forecast and has requested information relating to the break-even point for the activities for the period.

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Nov 2017 10:11 PM My Price 8.00

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