A&T Company makes a product that sells for SAR 300 per unit. The other details related to this product are as follows: Variable costs = SAR 60 per unit Fixed costs = SAR 144,000

You are required to calculate:

a) Contribution margin per unit and contribution margin ratio.

b) Break-even point in units and sales SAR.

c) Pretax profit if the company sells 1200 units.

d) Units needed to reach target pretax profit of SAR 120,000.

e) Sales SAR needed to reach the target pretax profit of SAR 120,000. 

f) The margin of safety in units for budgeted next year's sales at 1,800 units.

g) The margin of safety in SAR for budgeted next year's sales at 1,800 units

Answer rating: 100% (QA)

Ans Lets calculate each of the required values step by step a Contribution margin per unit and contr... View the full answer