The products that we plan to sell are flower bouquets. Product description Flower Bouquet Cost behaviour Carnation bundl
Posted: Wed Jul 06, 2022 5:54 am
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Shipping & Delivery expense Product Cost Material Cost Materials Carnation bundle Rose bundle Teddy bear Kitkat Cadbury bar Greeting card Wrapper + ribbon Flower bouquet Number 1 1 1 3 5 1 1 10 30.03 Labor Cost (RM300 per 1000 units) Price per item RM 4.28 RM 4.70 RM 12.80 RM 0.75 RM 1.00 RM300*10 |BM20 RM80 Cost Per Unit (RM) Price per 1000 Unit Production (RM) 30030.00 Price per unit RM 4.28 RM 4.70 RM 12.80 RM 2.25 RM 5.00 In our business, the workers are tasked with the arrangement of the flower bouquets where this process takes place at the rented booth. BM10 RM.ED Number of Labor Calculation of Cost Price per 1000 Unit Production (RM) 3000
Cost Booth decor Advertising and promotional materials-posters Period Cost Rental fee Shipping and delivery expense Devices & Internet Total Unit Production Cost Costs Materials Direct Labor (3000*10) Rental fee Total Selling Price Price per Unit (RM) -RM33.73 x 80% 30.03 3.00 0.70 33.73 Amount (RM) 250 150 700 1500 300 2900 The selling price is set to be on a 80% markup from the Unit Production Cost. Mark-up per unit
- RM 26.99 Selling Price -RM33.73 +RM26.99 - RM 60.72 To achieve the markup of 80% from the unit production cost, the unit selling price for the product flower bouquet is set at the price of RM60.72. Variable cost per unit Fixed Costs Costs Rental fee Booth decor Advertising and promotional materials - posters Devices & Internet Shipping & Delivery expense Total fixed cost (RM) Variable Cost Per Unit Cost Ingredients Direct Labor Cast Total Variable Cost per Unit 30.03 3 33.03 Amount (RM) 700 250 150 300 Cost Per Unit (RM) 1500 2900
Target operating profit Price x Quantity -[Fixed Costs (FC) + Average Variable Cost (AVC) x Quantity] -60.72 x 1000-[2900+ 33.03 x 1000] QUESTION Provide analyses to compute break-even point for different scenarios (e.g., changes in rental fee, sale price per unit, variable cost per unit and target operating profit). 3. Break even point: (RM2900)/RM26.99 - RM 24,790 -108 UNITS OR RM 2914.92