An organization manufactures and sells a single product which has a variable cost of 24 per unit

Question:

An organization manufactures and sells a single product which has a variable cost of £24 per unit and a contribution to sales ratio of 40 per cent. Total monthly fixed costs are £720000.

What is the monthly breakeven point (in units)?

(a) 18000

(b) 20000

(c) 30000

(d) 45000

(2 marks)

ACCA Financial Information for Management

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