Question

PLZ HELP: FIND THE PROFIT

Fixed costs are £26,000 per year, and variable costs include wages at £10 per
unit, raw materials at £12 per unit and delivery/packaging at £3 per unit. It is expected that a business will make and sell 750 units during the year, with
a selling price of £26.

Answer 1

Net loss -£25,250

Step-by-step explanation:

The computation of the profit is shown below:

Sales (750 units × £26) £19,500

Less: Variable cost (750 units × £25) £18,750

Contribution margin £750

Less: Fixed cost £26,000

Net loss -£25,250

The £25 could be calculated below:

= £10 + £12 + £3

= £25

Basically applied the above format