Calculate the total revenue required to break even. b) Calculate the number of units of each product
Question:
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Calculate the total revenue required to break even. b) Calculate the number of units of each product required to break even. c) Calculate the Margin of Safety. d) The sales manager has suggested a marketing initiative that would result in an increase in **fixed costs by 15% and an increase in Labour & Materials cost by ?0.20 per unit, this initiative would result in an increase sales volume of 10%. (** Note the increase in Fixed costs will also affect the fixed element of the Semi Fixed / Semi Variable costs) Calculate the revised revenue required to break even and the margin of safety if the initiative is implemented. e) Should the sales manager's proposal be implemented?
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura