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COST VOLUME PROFIT ANALYSIS
Example – BEP with 2 products
The soap division manufactures two distinct liquid products. The following information is
available for the six month period from 1 March 2013:
• The monthly selling and admin costs are estimated at R2 400 000. One third of these costs
vary directly with sales.
• The monthly factory overheads are estimated at R1 385 000.
Required:
(a) Calculate breakeven point in units for the soap division for March 2013.
(b) Calculate breakeven point in Rands for the soap division for March 2013.
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