The followings are the budget for next financial year (1 January 2023 - 31 December 2023),indicating the average selling price and variable costs of each product category. The commonfixed manufacturing overhead and the fixed non-manufacturing overhead costs are estimatedto be $1,250,000 and $2,778,320 respectively.Table 1: Budget Jan - Dec 2023Sales Quantity (in units)In $Unit selling priceUnit production costUnit selling & admin variable costs(5% of selling price)In $RevenueVariable Production CostsSelling & Admin Variable CostsModel 18,40060025030Folding BikeModel 27,50040018020Model 33,50048020024ElectricBike8002,000850100Total20,2005,040,000 3,000,000 1,680,000 1,600,000 11,320,000(2,100,000)| (1,350,000)| (700,000)| (680,000)| (4,830,000)(252,000) (150,000) (84,000) (80,000) (566,000)Q1. Based on the above budgeted information, calculate the expected breakeven units for theModel 2 folding bikes.

BREAKEVEN POINT (IN UNITS) = Fixed cost÷ contribution per unit Where contribution per unit= Selling…

Answered: Based on the above budgeted…

Business

Accounting

Based on the above budgeted information, calculate the expected breakeven units for the Model 2 folding bikes.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 6E: The fixed overhead budgeted for Ranier Industries at an expected capacity of 500,000 units is...

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