3.
is N20.
Time Dey Nigeria Limited manufactures and sells a product, the selling price of which
The summarized profit and loss statement for last year is as follows:
N
Sales
800,000
N
Direct materials
Direct wages
120,000
160,000
Variable production overhead
80,000
Fixed production overhead
100,000
Fixed Administration overhead
75,000
Fixed Selling and Distr. Overhead 60,000
595,000
Net Profit before tax
205,000
Less: provision for taxation (40%)
(82,000)
Net Profit after tax
123,000
You are required to:
(a)
Calculate the break-even point
(b)
profit
(15marks)
Determine the number of units to sell in the current year to achieve an after-tax
of N150,000. (5marks)
​