Page 278 - P1 Integrated Workbook STUDENT 2018
P. 278
Subject P1: Management Accounting
2.9 A manufacturer makes two products with the following details:
Product Ascot Aintree
Volume 12,000 36,000
Selling price $40 $60
Contribution per unit $30 $50
Profit per unit $25 $45
The fixed costs attached to the services are $2,000,000.
To the nearest $000, the margin of safety, in terms of sales revenue is:
A $110,000
B $195,000
C $240,000
D $640,000
2.10 A training provider is considering a one-off project which requires 80 hours of
labour. 20 hours can be provided by existing staff that are paid by the hour.
The remaining hours can only be achieved by reducing work on another of the
provider’s contracts which uses the same staff and makes contribution as
follows:
$
Revenue 240
Labour cost (@$40 per hour) 160
––––
Contribution 80
––––
The total cost of labour for the project would be $_________________
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