2024 – 1 Data related to the expected sales of a Products for ABC Inc for the current year is
cost accounting – 2024
1. Data related to the expected sales of a Products for ABC Inc. for the current year is follows:
Products Unit Selling Price Unit Variable Cos
Automobile ETB 200,000 ETB 160,000
The estimated fixed costs for the current year are ETB 20,000,000.
Instructions:
a) Determine the estimated units of sales of the product necessary to reach the break-even point for the current year.
b) Assume the company targets income before tax ETB 4,000,000. Calculate total units to be sold to achieve target profit.
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