Management Accounting

Mega Mart is a major producer of trollies. The following is a summary of data from the company operation in 2017. Total Fixed Cost Manufacturing overhead $200,000 Advertising $60,000 Variable Cost per cent Direct materials $30 Direct labour $10 Manual labour $10 Selling $5 Selling price per cent $100 1. Complete break-even units 2. Mega Mart sold 8,000 trollies in 2017, how much profit did the company make? 3. To improve profitability in 2018, management is considering 4 alternatives. 4. a. Calculating the number of units Mega Mart must sell to generate a targeted profit of $120,000 assuming the cost and selling price remain constraint. b. Calculate the operating income if the company increases the number of units sold by 25% and cuts the selling price by 5%