08 March 2007

Accounting Problem 1

I am going to post a couple of accounting questions for you to try. Nothing horrific but they do require a bit of thought/knowledge.

Don't be shy, have a go and post your answers and then I'll give my version: once I've recieved attempts from five different people!

Break Even Analysis

I have 2 products A & B, product A has operating cost of $600,00 pa + $12 per unit flexible manufacturing costs, product B has operating costs of $1,400,000 + $10 flexible manufacturing costs- the answer is about 40,000 units break even, I think, but how is this calculated?

Think carefully!




Duncan Williamson

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