Pev dec 09 section 2 - help!!!

HELLOU03

Hi,

I have been starring at this question for too long now - can anyone help???

Task 2.2a - Calculate the Gross Profit?
How do they get £1,352,000?
It is probably really obvious but when I look at the answer booklet it shows no workings?
I can get to the Net Profit of £1,040,000, there is probably a really simple way of calculating this.

Would appreciate some help.

Thanks
Helen

Rinske

Hi,

They produce 10,400,000 capsules.

The sales price is 0.30 each.
The material cost is 0.08 each and the fixed production overhead is 0.09 each.

0.30 - 0.08 - 0.09 = 0.13
0.13 times 10,400,000 capsules is 1,352,000.

HELLOU03

Great!!!! Thank you very much, hopefully I will be able to continue with the question!!
Why is it always easy when you ask the question!!!

thanks v much.