Exam 9: Relevant Costs Marginal Costing, and Short-Term Decision Making

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DTT makes one product. Annual sales of this product are 5,000 units and the margin of safety is 2,000 units. Total annual fixed costs are £150,000 and the variable cost per unit of production is £35. What is the selling price of each unit of product?

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C

Target profit in units =

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D

Which of the following costing techniques employ knowledge of break-even point in their calculations? Please select all that apply.

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A, B, C

Which of the following are irrelevant costs in short term decision making? Please select all that apply.

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XYZ makes one product which it sells for £100 per unit. Annual sales are 4,000 units. Break-even point is 2,000 units and total annual fixed costs are £120,000. What is the variable cost per unit of production and sales?

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Alex Limited manufactures 3 products, A, B and

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