Question: QUESTION FIVE Below is the data relating to a product called Wimble Per Unit (K) Selling price 25,000 9,000 6,000 4,000 3,000 Direct materials Direct

QUESTION FIVE Below is the data relating to a product called

QUESTION FIVE Below is the data relating to a product called Wimble Per Unit (K) Selling price 25,000 9,000 6,000 4,000 3,000 Direct materials Direct Labour cost Variable overhead Fixed overhead cast The total fixed cost per period was K60 million. The company has budgeted to sell 12,000 units for the period. Required: () Calculate the Break Even Point (B. E.P) in units and in sales value (4 marks) (i) Calculate the Margin of safety (MOS) in units and percentage (4 marks) (5 marks) (4 marks) (ii) Calculate the number of units to be produced and sales value if the company is targeting a profit of K1.2 milion (iv) The Break Even Point in units and value if the selling price dropped by 5% but other variables remained constant (v) Explain any four major limitations of Cost Volume Profit (CVP) Analysis (8 marks) Total 25 Marks]

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