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ABC Engineering Ltd . specialises in the sales of TR 9 valves. The owner has provided you with the following information: Sales Price per TR
ABC Engineering Ltd specialises in the sales of TR valves. The owner has
provided you with the following information:
Sales Price per TR valve
The Marginal Cost per TR valve is
The Fixed Costs per month are
You are required to calculate:
A How many TR valves must the company sell to break even?
marks
B If the company sells TR valves per month calculate the Margin of Safety and
the profit. marks
C Calculate the Contribution to Sales ratio and the breakeven in value. marks
D How many games must the company sell to earn a profit of marks
E The owners of the company inform you that the Fixed Cost will increase by
per month and the marginal cost by per TR valve. How many TR valves
must the company sell to breakeven.? marks
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