Question
In: Accounting
william's watches ltd produces and sells two types of wrist watch: the standard and the deluxe....
william's watches ltd produces and sells two types of wrist watch: the standard and the deluxe. in the coming year williams watches ltd expects to sell 4000 units of the standard and 2000 units of the deluxe.
Information on the two products is as follows:
| standard |
Deluxe |
|
| sales price | 500 | 400 |
| variable cost | 275 | 220 |
Total fixed costs are expected to be 180,000.
required:
1, calculate the breakeven point in sales value
2. calculate the margin of safety in sales value
3. Disscuss how changes in the following three components affect the breakeven point:
sales price per unit
variable cost per unit
the total fixed cost.
maximum word count: 150 words
4.Discuss the main differences between Accounting Rate of Return and internal Rate of Return
maximum word count: 110 words
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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types of calculator, standard and deluxe. The company is currently
using a traditional costing system with machine hours as the cost
driver but is considering a move to activity-based costing. In
preparing for the possible switch, Julio has identified two cost
pools: materials handling and setup. The collected data
follow:
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Deluxe Model
Number of
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30,800
Number of
material moves
590
890
Number of
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Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional...
Julio produces two types of calculator, standard and deluxe. The
company is currently using a traditional costing system with
machine hours as the cost driver but is considering a move to
activity-based costing. In preparing for the possible switch, Julio
has identified two cost pools: materials handling and setup. The
collected data follow:
Standard Model
Deluxe Model
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Number of material moves
600
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Number of setups
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270
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