nick limited sells creme, a cream suitable for variety of first aid uses. The company commenced operations earlier this year and expects to sell 100,000 tubes of Super crème. The following Information is available: Selling price per tube 7.00 Direct material cost per tube 2.10 Direct labour cost per tube 1.35 Variable overhead cost per tube 0.75 Total fixed costs for the year. 210,000 Required What is the Break-even point (BEP) in tubes and sales revenue? 4) If the company wanted to earn a profit of UGX 46,200 for the year how many tubes of Super crème must be sold? By what percentage should expected sales revenue fall before NICK Limited starts to make a loss? State the assumptions and limitations of break-even analysis
nick limited sells creme, a cream suitable for variety of first aid uses. The company commenced operations earlier this year and expects to sell 100,000 tubes of Super crème.
The following Information is available:
Selling price per tube 7.00
Direct material cost per tube 2.10
Direct labour cost per tube 1.35
Variable
Total fixed costs for the year. 210,000
Required
What is the Break-even point (BEP) in tubes and sales revenue? 4) If the company wanted to earn a profit of UGX 46,200 for the year how many tubes of Super crème must be sold?
By what percentage should expected sales revenue fall before NICK Limited starts to make a loss?
State the assumptions and limitations of break-even analysis
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