Project #161358 - Accounting

Business Tutors

Subject Business
Due By (Pacific Time) 12/21/2016 11:58 pm

Crown Ltd sells a single product with full capacity of 80,000 units per month. The selling price per unit

is $62 and is currently operating at 60% capacity. The fixed costs of the Company amount to

$500,000 per month and its Variable and Semi-Variable Costs are given below:

Variable costs:

Material $21 per unit

Labour $17 per unit

Overheads $ 7 per unit

Semi Variable costs:

At production volume of 60,000 units $200,000 per month

At production volume of 100,000 units $280,000 per month

Required:

 

(a) Calculate the total variable cost per unit.

 

(b) Calculate the total fixed cost per month.

 

(c) Calculate the break-even point in sales (units).

 

(d) Calculate the current margin of safety percentage.

 

(e) Calculate the minimum sales in units to earn a profit of $400,000 per month.

 

(f) Prepare flexible budget at 70%, 80%, 90% and 100% of capacity.

 

(g) Briefly discuss the advantages of a costing system in a manufacturing company.

 

(ALL WORKINGS REQUIRED)

 

TutorRating
pallavi

out of 1971 reviews
amosmm

out of 766 reviews
PhyzKyd

out of 1164 reviews
rajdeep77

out of 721 reviews
sctys

out of 1600 reviews
sharadgreen

out of 770 reviews
topnotcher

out of 766 reviews
XXXIAO

out of 680 reviews