A company makes a single product with the following data: $ $ Selling price 25 Material 5 Labour 7 Variable overhead 3 Fixed overhead 4 (19) ––– Profit per unit 6 ––– Budgeted output is 30,000 units. In relation to this data, which of the following statements is correct?
A、The margin of safety is 40%
B、The contribution to sales ratio is 24%
C、The volume of sales needed to make a profit of $270,000 is 45,000 units
D、If budgeted sales increase to 40,000 units, budgeted profit will increase by $100,000
A、The margin of safety is 40%
B、The contribution to sales ratio is 24%
C、The volume of sales needed to make a profit of $270,000 is 45,000 units
D、If budgeted sales increase to 40,000 units, budgeted profit will increase by $100,000
【参考答案及解析】
If budgeted sales increase to 40,000 units, then budgeted profit will increase by $100,000. This is because 10,000 more units will be sold at a contribution per unit of $10. The fixed costs would not be expected to change.
If budgeted sales increase to 40,000 units, then budgeted profit will increase by $100,000. This is because 10,000 more units will be sold at a contribution per unit of $10. The fixed costs would not be expected to change.