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Faidika limited deals in the manufacture of product X. The variable cost of production per unit of product X is Sh. 2 whereas the fixed cost is Sh. 15,000. It has been estimated that if the unit selling price of product X is set at Sh. 4.40, the sales volume will be 7,500 units whereas if the unit selling price of product X is set at Sh. 4.00, the sales volume will be 11,000 units.Required.i) The budgeted profit for each of the above set selling prices.ii) The break-even point for each of the above set selling prices.iii) The margin of safety for each of the above set selling prices.iv) The break even chart for the price of Sh. 4.40 per unit for production levels of 0,5,000 and 10,000 units of X.
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The cost accountant of Kalnet manufacturing ltd. has determined that the total cost and revenue functions vary according to the units produced and sold in a curvilinear nature. The following table shows the production in units and the associated total revenue and costs.
Date posted: May 17, 2021 . Answers (1)
The total manufacturing cost function of Mangwe limited is quadratic in nature and passes through the following points.
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Citing an example in each case, distinguish between 'factorials' and 'permutations' as used in counting techniques.