A product has the following costs. $ Direct materials 8 Direct labour 10 Variable overheads 4 Fixed overheads are $15,000 per month. Budgeted sales per month as 500 units What is the profit mark up (the nearest whole percentage) which needs to be added to marginal cost to establish a selling price that will allow the product to breakeven?
【参考答案及解析】
136% Breakeven point is when total contribution equals fixed costs. At breakeven point, $15,000 = 500 (price - $22) So $30 = price – $22 So $52 = price So profit mark up = ($52 – $22) / $22 ×100% = 136%
136% Breakeven point is when total contribution equals fixed costs. At breakeven point, $15,000 = 500 (price - $22) So $30 = price – $22 So $52 = price So profit mark up = ($52 – $22) / $22 ×100% = 136%