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3 (CVP Analysis & Incremental Analysis) Part A 25 MARKS 10 Marks Milles Fleurs is undergoing an analysis of one of the products it produces,
3 (CVP Analysis & Incremental Analysis) Part A 25 MARKS 10 Marks Milles Fleurs is undergoing an analysis of one of the products it produces, the Ambard Plus. Each Ambard Plus is sold for $40. The variable cost per unit is $12, and the company's monthly fixed cost is $23,000. Required: a. Compute the product's contribution margin per unit and contribution margin ratio. (2 Marks) b. Compute the breakeven point in units (rounded to nearest whole number) (2 Marks) c. If the company wants to earn a target income of $61,000 on this product, compute the level of sale dollars required. (3 Marks) d. If the company achieves this level of sales (from part c), compute its margin of safety in dollars with respect to the Ambard Plus
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