The following information is available in respect of Bingo Limited: Fixed costs 60,000 per annum Selling Price
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Question:
- The following information is available in respect of Bingo Limited:
Fixed costs 60,000 per annum
Selling Price 20 per unit
Variable Cost 10 per unit
Relevant Range 4,000 -12,000 units
Budgeted Sales 10,000 units per annum
REQUIREMENTS:
- Calculate the break-even point in (i) units (ii) revenue (iii) contribution per unit.
- Calculate the absolute margin of safety in (i) units (ii) revenue.
- Calculate the percentage margin of safety in respect of budgeted sales.
- Calculate the number of units which must be sold in order to generate a 20,000 profit.
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