ABC company produces and sells a single product, Product Z. The following budgeted information is available:
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Question:
ABC company produces and sells a single product, Product Z. The following budgeted information is available:
Product Z | |
$ | |
Selling price per unit | 50 |
Variable cost per unit | 30 |
Fixed Costs(Total) | 200,000 |
Budgeted sales | 750,000 |
Budgeted profit | 100,000 |
Required:
Calculate the following:
- Breakeven point in units
- Margin of safety
3. If the company wants to increase itsprofitto$200,000/=,calculate how many units should be produced and sold so as to achieve this target.
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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