CME Pie Factory recorded total sales of 240000 last month wi

CME Pie Factory recorded total sales of $240,000 last month with a Unit Selling Price of S8.00. ACME al Lsts of 71, 200 and Total Variable Costs of $90,000 last month. Using this Information, answer the follow What is the number of Unit Sold? What is the Unit Fixed Cost? What is the Unit Variable Cost? What is the (Total Unit Cost?) What is the Total Profit?

Solution

Total sales = $240,000
Fixed Cost = $71,200
Variable Cost = $90,000
Unit Selling Price = $8

3.1 Number of units sold = Total sales/ unit selling price = $240,000/$8 = 30,000 units

3.2 Unit fixed cost = Fixed cost/ Number of units sold = $71,200/30,000 = $2.373

3.3 Unit Variable cost = Variable cost/ Number of units sold = $90,000/30,000 = $3.00

3.4 Total Unit cost = Total cost/Number of units sold = (Fixed cost + Variable cost)/Number of units sold = ($71,200 + $90,000)/30,000 = $5.373

3.5 Total Profit = Total sales - Total cost = $240,000 - ($71,200 + $90,000) = $78,800