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Slatter and Higson Limited Manufactures a Standard Model of Vacuum

Question 11

Multiple Choice

Slatter and Higson Limited manufactures a standard model of vacuum cleaner.The selling price of each cleaner is £135.Variable costs of manufacture are £52.50.During its 20X8 financial year the company expects to incur fixed production costs of £80 000 and fixed selling and administration overheads of £32 000. How many vacuum cleaners will the company have to sell in order to break-even (to the nearest whole unit) ?


A) 970
B) 1358
C) 2133
D) 1524

Correct Answer:

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