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2 You are hired as a consultant by Muscat LLC, which is planning to start a new food processing business. The selling price is estimated
2 You are hired as a consultant by Muscat LLC, which is planning to start a new food processing business. The selling price is estimated to be RO 12 per unit. Other information is provided in the table below. Cost Head Amount RO Fixed Costs: 4100 per month Variable Costs. 8 per unit Calculate: 1. What is the break-even sales volume? 2. What is the value? break-even sales 3. What is the margin of safety if the expected sales is 2,000 units per month. 4. How many units should be sold to achieve a target profit of RO 5,000 per month? 5. What is the expected monthly profit for the sales of 3,100 units in the month of December? 6. What is the effect on profit if the total fixed Decreases by 16% in January, assuming the selling price and variable costs remain unchanged? 7. What is the new Break Even point in units if total variable cost increase by 10%, assuming the sale price and fixed cost remain the same
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