Q2. Suppose that you are working in a company as a cost manager that is making a single product. Determine the following values of your own for this product:

· Selling price per unit

· Variable cost per unit

· Fixed cost

· Target profit for next year

After determining the values for the above, find out:

a) Break-even point in units.

b) Break-even point in sales value.

c) Units needed to reach target pretax profit (as decided by you in your example).

d) Sales value required to reach target pretax profit (as decided by you in your example).

Note: You are required to assume values of your own and they should not be copied from any sources.

Answer rating: 100% (QA)

step 1 Assumptions Selling Price per unit 50 Variable Cost per unit 20 Fixed Cost 600000 Target prof... View the full answer