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3. Molten Limited has the following revenue and cost structure: Required: (i) Calculate the contribution margin ratio. [2] (ii) Calculate the breakeven point in units
3. Molten Limited has the following revenue and cost structure: Required: (i) Calculate the contribution margin ratio. [2] (ii) Calculate the breakeven point in units and in tiollars. [4] (iii) What must the new selling price be if the com sany's variable cost per unit is reduced to $112.00 after a process re-egineering exercise and the mandate is given that the contributiop maryin ratio should remain intact? [5] (iv) If the company normally produces and sells 2.000 units calculate the margin of safety in units and in dollars. [4] (v) If the company wishes to report net income of $252,000 how many units must be sold to achieve this target? [3] (vi) What are some of the decisions that a company can make to reduce its operating costs? [3] (vii) How can profits be maximized through the use of sales mix? [4]
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