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Discussion #11 (Weekly Group Discussion) GROUP MEMBERS : Mary Gobinsigh Rhea John- (Leader) Cindy Joseph Julie Octave Tanisha Todd UNIVERSITY: University of the West Indies: Open Campus COURSE CODE: ACCT1003 COURSE TITLE: Introduction to Cost & Management Accounting Semester I 2018/2019
G-Force Manufacturing Company Variable Costs per unit = ($35+$30+$15) = $80 Total Fixed costs = ($232,000+$33,000+$155,000) = $420,000 i. (Selling Price*Quality) – (Variable Cost *Quality) – Total Fixed Costs = Profit (6,000*Selling Price) – (80*$6,000) -$420,000 = $300,000 (6,000*Selling Price) = 300,000+480,000+420,000 (6,000*Selling Price)= $1,200,000 Selling Price = 1,200,000 6,000 = $200 per unit ii. G-Force Manufacturing Company Contribution Margin income statement For the year ended 31 December 2017 (For 6,000 units) $ TOTAL $ PRICE PER UNIT $ Sales Revenue 1,200,000 200 LESS: Variable Cost 480,000 80 Contribution 720,000 120 LESS: Fixed Cost: Manufacturing Overhead 232,000 Advertising 33,000
Administrative 155,000 Total Fixed Cost 420,000 NET INCOME 300,000 iii. Break-even point in units = Total Fixed Cost/(Selling Price per unit- Variable Cost per unit) = 420,000/ (200-80) = 3,500 units Breakeven point in dollars

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