Answer to Question #233174 in Management for Mea K

Question

A company manufactures one product that currently sells for N$280. This product has the following costs:

Variable costs: Material costs is 10 square metres at N$11.40 per square metre, labour costs is 8 hours at N$6.10 per hour plus 12 hours at N$4.50 per hour and Royalties – N$15 per product

Fixed costs are N$10,600

calculate The contribution (per product) towards the fixed costs Of this company and the number of products that would have to be sold to break even.

Answer 1

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