The Jerry Company produces product X. Each product
sells for RM20.00. Unit costs are as follows:
RM
Direct material 3.90
Direct labour 1.40
Variable factory overhead 2.10
Variable selling and administrative expenses 1.60
Total fixed factory overhead is RM70,000 per year and total fixed
selling and administrative expense is RM100,000. During the recent
year, 20,000 units were sold.
Required:
a) Calculate the variable cost per unit, total fixed cost and the
contribution margin per unit.
b) Calculate the breakeven point...