A. MC-LC 21000-6600 = 14400 = 0.

8 Average VC/UNIT
MU-LU 20000-2000 18000

B. MC-LC 24000-2400 = 21600 = 1.20 Average VC/UNIT

MU-LU 20000-2000 18000

C. MC-LC 8000 = 0 = 0 Average VC/UNIT

MU-LU 20000-2000 18000
 FC+DP
CM/UNIT

= 90000+18000
20-4

= 90000+18000
6

= 117000
6

= 19500
A. FC = 90000 = 90000 = 30000
SP/VARIABLE COST 10 _7 3

B. FC = 144000 = 144000 = 48000

SP/VARIABLE COST 12_9 3

C. FC = 54000 = 5400 = 27000

SP/VARIABLE COST 5_3 2
A. CALCULATE BREAK EVEN POINT :

FIXED COST / SELLING PRICE PER UNIT-

VARIABLE COST PER UNIT

5990

BREAK EVEN UNITS = 18000 UNITS

B. HOW MANY UNIT SOLD TO EARN $20000..

PROFIT = SALE - VARIABLE COST- FIXED COST

20000= 15X - 10X-90000

110000 = 5X

X = 110000/5 = 22000 UNITS

SO IF COMPANY WANTS TO EARN 20000 THEN

SHOULD SELL 22000 UNITS...

IF COMPANY WANT TO EARN 30000 AFTER

C.
TAX:

BEFORE TAX = 30000*100/60 = 50000

50000= 15X-10X - 90000

140000 = 5X

X= 28000 UNITS
 SALES 72500
C.O.G.S
Direct material 8000
Direct labor 5000
VMOH 1360
FMOH 12100-26460
GROSS PROFIT 46040
OPERATING EXPENSES
USGA 11500
FSGA 6400-7900
Net Income 28140

CM I/S
SALES 72500
(VC)
Direct material 8000
Direct labor 5000
VMOH 1360
11500-25800
GROSS PROFIT 46640
OPERATING EXPENSE 12100
6400-18500
NET INCOME $ 28,140.00