Question: The following information is related to CTH Corporation which manufactures a single product: (2 Marks) Selling price per unit: SAR 800 Variable cost per unit:

The following information is related to CTH Corporation which manufactures a single product: (2 Marks)

Selling price per unit: SAR 800

Variable cost per unit: SAR 240

Total fixed cost: SAR 400,000

You are required to calculate:

  1. Contribution margin per unit and contribution margin ratio.
  2. The break-even point in units and break-even point is sales value SAR.
  3. Pretax profit of the company if it sells 1,400 units of the product.
  4. The number of units required to sell to reach a target pretax profit of SAR 200,000?

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