1. Explain the break-even point 2. What is the unit contribution margin? How is it computed? 3....

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Question:

1. Explain the break-even point

2. What is the unit contribution margin? How is it computed?

3. What is the margin of safety?

4. List the assumptions that underlie basic cost-volume-profit analysis.

5. Ambar Limited makes this data available: Normal sales RM 2,000,000

Annual fixed costs RM 300,000

C/S ratio 25%

Required:

(a) The breakeven point in value (RM)

(b) The margin of safety

Related Book For answer-question

Elementary Principles of Chemical Processes

ISBN: 978-0471720638

3rd Edition

Authors: Richard M. Felder, Ronald W. Rousseau

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Posted Date: Jan 12, 2021 04:33 PM

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1. Explain the break-even point 2. What is the unit contribution margin? How is it computed? 3....

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Expert Answer:

1 BEP Break even point is the situation in which business earn no profit or loss It is expressed in ... View the full answer

Elementary Principles of Chemical Processes

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