DW Ltd. Manufactures and sells cellular phones. The variable cost per unit is $120 while the fixed
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Question:
DW Ltd. Manufactures and sells cellular phones. The variable cost per unit is $120 while the fixed cost per month is $320,000. The selling price per unit is $980. The current level of output is 1,450 units.
You are required to calculate:
(i) Breakeven point (in units)
(ii) Breakeven point (in sales value)
(iii) Margin of Safety (in units)
(iv) The level of output (in units) that will bring a profit of $45,000.
Related Book For
Accounting and Finance An Introduction
ISBN: 978-1292088297
8th edition
Authors: Peter Atrill, Eddie McLaney
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