Poza Product has variable costs of TZS 2,000 per unit, and selling price of TZS 6,000 per unit. The fixed costs are TZS 1,000,000 per year.

Required: 

a). Calculate budgeted profit (or loss) for the year if budgeted production is 300 units

b). Compute break-even point in units and shillings (revenue)

c). Determine units to be sold to achieve a target profit of TZS 300,000 per year

d). Calculate the margin of safety

Answer rating: 100% (QA)

a Budgeted profit or loss for the year if budgeted production is 300 units Variable cost per unit TZ... View the full answer