Question: 2. William Ltd makes leather purses. It has drawn up the following budget for its current financial period: Selling price per unit RM 12 Variable

2. William Ltd makes leather purses. It has drawn up the following budget for its current financial period:

Selling price per unit RM 12

Variable production cost per unit RM 4.20

Fixed production costs RM 235,000

Fixed selling and administration costs RM 198,000

Sales 70 000 units

Required:

The company plans to increase the sales volume by 35% for the next year. Calculate the break-even (unit and value) and margin of safety of the company (unit)

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