A product has the following costs. $ Direct materials 15 Direct labour 9 Variable overheads 16 Fixed overheads are $9,000 per month. Budgeted sales per month are 450 units to allow the product to break even. Fill in the blank in the sentence below. The mark-up which needs to be added to marginal cost to allow the product to break even at the budgeted units is _______ %.
【参考答案及解析】
The correct answer is: 50%. Breakeven point is when total contribution equals fixed costs. At breakeven point, $9,000 = 450 (selling price – $40) ∴ $20 = price – $40 ∴ price = $60 ∴ Mark-up = ((60 – 40) /40) × 100% = 50%
The correct answer is: 50%. Breakeven point is when total contribution equals fixed costs. At breakeven point, $9,000 = 450 (selling price – $40) ∴ $20 = price – $40 ∴ price = $60 ∴ Mark-up = ((60 – 40) /40) × 100% = 50%