Principles of Accounting

Principles of Accounting

Paper 1

For the purpose of this paper, we have selected Barnes & Noble. Following example covers the purpose of Paper 1. All the data used in the given calculations is assumed and is hypothetical.

BREAK-EVEN ANALYSIS

Barnes & Noble

A. Production & Selling Costs: (Variable Costs)

 

Unit Cost ($)

Raw Material for 1 Book

4.00

Printing cost of 1 book

1.70

Labour =1 hour x $3 per hour

3.00

Packaging 1 box per book

0.30

Distribution/transportation cost per book

1.00

Sales commission to sales agents pr book

2.00

Total unit variable cost

 

12.00

It takes 1 hour to finalize a book and labour costs are

$3.00 per hour

B. Total Variable Costs per Annum

 

 

$12.00 per book x ...