Southend Ltd Manufactures Wheelie Bins, Each of Which Sells for £65.50

question 12

Multiple Choice

Southend Ltd manufactures wheelie bins, each of which sells for £65.50. Variable labour costs of manufacture are £7.50 and variable raw materials costs are £6.25 per bin. Fixed costs for the 20X1 financial year are budgeted at £342000 and the directors have set a target profit figure for the year of £150000. How many wheelie bins must the company sell in 20X1 in order to reach the target profit (to the nearest whole unit) ?

• A) 9875
• B) 8768
• C) 9507
• D) 7887

---

Definitions:

Schedule Performance

The measurement of project execution progress by comparing planned versus actual progress.

Customer Service

The assistance and advice provided by a company to those people who buy or use its products or services.

Supply Chain Management

The management of the flow of goods, services, and information from suppliers to end users, encompassing the coordination of production, inventory, location, and transportation.

Challenges

Refers to difficulties, obstacles, or issues that need to be overcome, and can stimulate learning, growth, or improvement.