furniture for garden centres. Set out below is the sales revenue and profit for 2021. Year Sales 2021 £372,424 Profit £150,268 In 2021 the business manufactured and sold 98,000 units and had fixed costs of £132,670. All other costs were variable. a. Calculate the selling price and variable cost per unit for 2021. (Answers should be to the nearest penny. Any figures used in further answers to this question should be rounded numbers.) Calculate the sales revenue level, both in units and money terms, at which the business broke even in 2021. (Answers for all breakeven questions should be rounded up to the next whole number or pound.) Bianca had considered spending an additional £12,200 on advertising in 2021. She predicted that such an additional investment would have increased the sales. and production volume in the year to 126,000 units at a better selling price of £4.10. She also predicted there would have been no other changes to her fixed costs for the year nor any changes to the variable cost per unit. i.If her predictions had proved correct, what would have been her new profit for the year? If her predictions had proved correct, what would have been her new breakeven point, in units, for the year? (Answers for all breakeven questions should be rounded up to the nearest whole number or pound.)
furniture for garden centres. Set out below is the sales revenue and profit for 2021. Year Sales 2021 £372,424 Profit £150,268 In 2021 the business manufactured and sold 98,000 units and had fixed costs of £132,670. All other costs were variable. a. Calculate the selling price and variable cost per unit for 2021. (Answers should be to the nearest penny. Any figures used in further answers to this question should be rounded numbers.) Calculate the sales revenue level, both in units and money terms, at which the business broke even in 2021. (Answers for all breakeven questions should be rounded up to the next whole number or pound.) Bianca had considered spending an additional £12,200 on advertising in 2021. She predicted that such an additional investment would have increased the sales. and production volume in the year to 126,000 units at a better selling price of £4.10. She also predicted there would have been no other changes to her fixed costs for the year nor any changes to the variable cost per unit. i.If her predictions had proved correct, what would have been her new profit for the year? If her predictions had proved correct, what would have been her new breakeven point, in units, for the year? (Answers for all breakeven questions should be rounded up to the nearest whole number or pound.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance
Transcribed Image Text:Bianca, a sole trader, owns and manages a business
which manufactures and sells one special type of garden
furniture for garden centres.
Set out below is the sales revenue and profit for 2021.
Year
2021
Sales
£372,424
Profit
£150,268
In 2021 the business manufactured and sold 98,000 units
and had fixed costs of £132,670. All other costs were
variable.
a. Calculate the selling price and variable cost per unit for
2021. (Answers should be to the nearest penny. Any
figures used in further answers to this question should
be rounded numbers.)
Calculate the sales revenue level, both in units and
money terms, at which the business broke even in 2021.
(Answers for all breakeven questions should be rounded
up to the next whole number or pound.)
Bianca had considered spending an additional £12,200
on advertising in 2021. She predicted that such an
additional investment would have increased the sales
and production volume in the year to 126,000 units at a
better selling price of £4.10. She also predicted there
would have been no other changes to her fixed costs for
the year nor any changes to the variable cost per unit.
i.If her predictions had proved correct, what would have
been her new profit for the year?
If her predictions had proved correct, what would have
been her new breakeven point, in units, for the year?
(Answers for all breakeven questions should be rounded
up to the nearest whole number or pound.)
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