Fluffy Toys Limited manufactures soft toys, and is able to sell all that can be produced. The variable costs for producing each toy are Selling price for each toy is Fixed costs of running the business per month are Qhe current output is a. b. C. d. e. f. g. $10 $20 $5000 700 units With the use of

Transcribed Image Text:

Fluffy Toys Limited manufactures soft toys, and is able to sell all that can be produced. The variable costs for producing each toy are Selling price for each toy is Fixed costs of running the business per month are Qhe current output is a. b. C. d. e. f. g. $10 $20 $5000 700 units With the use of a spreadsheet, identify how many toys need to be produced and sold each month for the business to cover its costs/break even? What is the margin of safety in units, dollars and percentage? In times of recession and where there is a comparison to be made between two or more products, on what basis should Fluffy Toys Limited decide which one to produce? What is the contribution margin ratio per unit? Using the above ratio, calculate the sales revenue need to break even. ( What are the sales revenue needed to make a profit of $2000 per month? What is the number of toys needed to make a profit of $2000 per month?(

Expert Answer