Multiple Choice
Southend Ltd manufactures wheelie bins, each of which sells for £65.50. Variable labour costs of manufacture are £7.50 and variable raw materials costs are £6.25 per bin. Fixed costs for the 20X1 financial year are budgeted at £342000 and the directors have set a target profit figure for the year of £150000. How many wheelie bins must the company sell in 20X1 in order to reach the target profit (to the nearest whole unit) ?
A) 9875
B) 8768
C) 9507
D) 7887
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Marginal costing is useful for which important
Q8: Fixed cost will always be irrelevant costs.
Q9: Sunk costs can easily be identified in
Q10: The time period over which the relationship
Q11: Last year ABC Ltd sold 5000 units
Q13: Of the following statements about marginal costing
Q14: An opportunity cost of a resource is
Q15: It may be that a product makes
Q16: A company is proposing to expand its
Q17: Where a resource was originally purchased for