Question

Duestion 6 A Company manutatures and sels one product. The product has the folowing cos and revenue deta, Singl TAD Variable cost Per Leit (AD 60 35 Total eed experses per month ane as llons Expenes type AED Adventisng 000'00 Caling Municipaity fo S000 The company produced and sold 10.000 unts duning the month and had no boginning or ending inventories. Gelect the closeut comect anawers for the below auoutions from the anewer's optione provided T What is the break-oven rovenue in dirhams? A AED 22,222 Hew mry unts would the company have to wl to havepot of AED120.000 B10.000 UNITS CIAED 6.000 the sales increase by 200 units by how muoh shouid the net operuting income toreit or D.AD 540.00 E AED 30,000 FLAED R.000 G3800 UNITS H40.000 UNITS M UNITS JAED 110.00

Answer 1

Price per unit = AED 60

Variable cost per unit = AED 35

Fixed cost = 20,000 + 100,000 + 100,000 + 5000 =AED 225,000

Break even point,

FC Q=P-V

225,000 ? 60 – 35 = 9,000 units

Break even revenue = 60 × 9,000 = AED 540,000

Now, when the company wishes to earn AED 120,000

FC +7 Q = P_V

225,000 + 120,000 -= 13,800 units 60 - 35

When sales increases by 200 units

Change in operating income = 25 × 200 = AED 5,000

the break-even revenue = D. AED 540,000

No. of units to earn a profit $ 120,000 = G. 13,800 units

Change in operating income = C. AED 5,000

Please contact if having any query will be obliged to you for your generous support. Please help me it mean a lot to me. Thank you.