Sales in

Month Sale VC
amount
Nov-19 45,000 675,000 560,893
Dec-19 40,000 600,000 455,893
Jan-20 17,000 255,000 211,893
Feb-20 28,000 420,000 332,893
Mar-20 32,000 480,000 384,893
Apr-20 21,000 315,000 259,893
183,000 2,745,000 2,206,357
Selling price 15

Calculating cost using High low method

High value
Low value
Difference ….

Variable cost per unit = 349,000

28,000

Fixed cost
variable cost
profit volume ratio
breakeven point
margin of safety
CM FC Profit/loss

114,107 66,107 48,000 627,000

144,107 66,107 78,000 522,000
43,107 66,107 (23,000) 278,000
87,107 66,107 21,000 399,000
95,107 66,107 29,000 451,000
55,107 66,107 (11,000) 326,000
538,643 396,643 142,000

2.94340359
22,459.42
Units Cost
45,000 627,000
17,000 278,000
28,000 349,000

12.46
 A
£ per unit
Selling 200
Direct ma 80
Direct labo 40
Units produced and so 12,000

Activities
Number of purchase requisitions 1200
Number of set-ups 100

Overhead costs
Receiving/inspecting quality assurance
Production scheduling/ machine set-up

Product
A
Sale 2,400,000

1. Direct Material 960,000

2. Direct Labor Cost 480,000
3. Overhead Cost
a-Receiving/inspecting quality assuranc 176,000
b-Production scheduling/ machine set-up 11,682

Total Cost 1,627,682

Budgeted Profit 772,318

 B C
£ per unit £ per unit
160 168
70 45
60 45
18,000 20,000

1600 2000
200 300

1,760,000
1,401,870

Product
B C
2,880,000 3,360,000

1,260,000 900,000
1,080,000 900,000

156,444 176,000
15,576 21,028

2,512,021 1,997,028

367,979 1,362,972