Question

****PLEASE ANSWER AS QUICKLY AS POSSIBLE!!!***

with this information, the question is,

“IF UNITS SOLD ARE 8000, WHAT SALES PRICE WILL GENERATE -0- PROFIT??”

§§§리 Cash balance, beginning (given) 5 Add: Cash receipts from July cash sales 40,000 $96,000 Collections of receivables from credit sales in June: Collection within the discount period Collection after the discount period 206,976 88,000 34,560 Collections of receivables from credit sales in May 425,536 465,536 0 Total cash available in July 1 Cash Disbursements: Materials purchases: June purchases 9,212 72,128 2 July purchases Direct manufacturing labor $ 81,340 15,250 126,880 30,000 6 Variable factory overhead Fixed factory overhead Variable marketing, customer services, and administrative expenses Fixed marketing, customer services, and administrative expenses Total cash disbursements 144,000 90,000 $ 487,470 S (21,934) 3 Cash balance before financing 24 Financing: 62,000 s 40,066 3 Amount to borrow 26 Cash balance, July 31 §§§§§§§용용용용용용용용용용용용§§

Answer 1

If sales units are 8000:

Variable is which varies from units.

And fixed are cost which remain same despite of units manufactured.

Sales price = 640000 (480000/6000*8000) as it's variable.

Less cost of goods = 372000 (279000/6000*8000) as it's variable

Less selling and administration expenses = variable 192000 (144000/6000*8000)

less Fixed 100000 same disrespect of number of units sold.

So answer comes to rs. 24000 loss. (640000-372000= 268000-192000-100000= -24000)