Question

A-Compute BEP if you have the following:

Fixed Cost (F)    = 200000    SR

Variable Cost (V)   = 15           SR

Sell Price (S)       = 25            SR

B- Compute the total Variable Cost if we produced 40000 Units.?

C- Compute the total Cost if we produced 50000 Units.?

Answer 1

Selling Price (a) = 25

Variable Cost (b) = 15

Contribution (c=a-b) = 10

Contribution margine % (d=(c/a)x100) = 40%

Fixed Cost (e) = 200,000

A) Break even Point = Fixed Cost / Contribution %

BEP (f=(e/d)) = 500,000

BEP units (g=f/a) = 20,000

B) Variable Cost = Sales x (100%-Cotribution%)

Total Variable Cost for 40,000 units (h = (40,000xa)x(100%-d)) = 600,000

C) Total Cost = (variable Cost + Fixed Cost)

Total Cost for 50,000 units = (i= ((50,000xa)x(100%-d))+ 200,000) = (750,000+200,000) = 950,000