The following information is related to CTH Corporation which manufactures a single product: (2 Marks)

Selling price per unit: SAR 800

Variable cost per unit: SAR 240

Total fixed cost: SAR 400,000

You are required to calculate:

1. Contribution margin per unit and contribution margin ratio.
2. The break-even point in units and break-even point is sales value SAR.
3. Pretax profit of the company if it sells 1,400 units of the product.
4. The number of units required to sell to reach a target pretax profit of SAR 200,000?

Answer rating: 100% (QA)

1 Contribution margin selling price variable cost SAR800SAR240 ... View the full answer