KRIS Ltd forecasts the 2019 sale of its single product, COS, to 200,000 units at $120...

 

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KRIS Ltd forecasts the 2019 sale of its single product, COS, to 200,000 units at $120 per unit with a total budgeted net income of $2,775,000. Estimated annual fixed costs are $3,500,000. Corporate income tax rate is 25%. Required 1. Using the above data, calculate: (a) the contribution margin and the contribution margin ratio [8 marks] (b) the breakeven volume and breakeven revenue (Note: do not resort to multiplying volume by unit price) [6 marks] KRIS Ltd forecasts the 2019 sale of its single product, COS, to 200,000 units at $120 per unit with a total budgeted net income of $2,775,000. Estimated annual fixed costs are $3,500,000. Corporate income tax rate is 25%. Required 1. Using the above data, calculate: (a) the contribution margin and the contribution margin ratio [8 marks] (b) the breakeven volume and breakeven revenue (Note: do not resort to multiplying volume by unit price) [6 marks]

Answer rating: 100% (QA)

KRIS Ltd CostVolumeProfit CVP Analysis Data Sales volume units 200000 Unit price 120 Total budgeted ... View the full answer