00:02
64 method a which is capital intensive.
00:07
We will calculate first the total manufacturing cost per unit.
00:26
So it is evaluated as raw materials, which is $5 wherein we add direct labor, which is evaluated at $12 multiplied by 0 .5 dlh to which we add variable overhead, which is evaluated at $6 multiplied by 0 .5 dlh wherein we add directly transable incremental fixed manufacturing cost, which is of the value $24 ,40 ,000.
01:03
So equating it we get the value to be $24 ,40 ,014 then evaluating total selling expenses per unit, which is incremental selling expenses per unit.
01:28
So $2 multiplied by 5 lakh annually wherein we add $2 per unit.
01:45
So the value then is, then evaluating total cost per unit, which is evaluated as total manufacturing cost per unit of the value $24 ,40 ,014 to which we add total selling expenses per unit.
02:08
So it is $2.
02:11
So we then get, sorry we then evaluate break -even point as total fixed cost of the value $24 ,40 ,000.
02:34
So the total cost per unit is evaluated as $24 ,40 ,016 then break -even point is evaluated as $24 ,40 ,000 divided by selling price per unit, which is $30 wherein we subtract total variable cost per unit, which is $2.
02:57
So the value then we have is $85 ,570 units...