XYZ Industrial Co. Producing and selling YK product. Normal production capacity of the company is 40.000 units / month. Planned production and selling unit is; 24.800 /month . Information gathered about YK product is as follows; Direct Material : 8.50 TL / unit , Direct Labor : 9.50 /unit ,Variable Overhead : 4.00TL/unit Sale Price: 40TL /unit , B) A new customer wants to make an offer to distribute in a new region. Company offering to buy additional 9.600 units with a sale price of 30.-TL/unit 

REQUIRED 

1) If Company’s target profıt is 0 (zero) TL what wil the required quantıty and amount of sale for target profit zero. 

2) If company sold the planned sale quantıty (24.800). Calculate the Margin of Safety and Margin of Safety Ratio and calculate the profit and profit margin by uing “Margin of safety approach”. 

3) Would you accept New Customer’s additional 9600 unit offer ( 30 TL/ unit)

Answer rating: 100% (QA)

1 Multiply the expected number of units to be sold by their expected contribution margin to arrive at the total contribution margin for the period Sub... View the full answer