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Abdulla and Brothers Est. makes products. They estimate fixed costs of 10,000,000 BD. Its variable costs are 3,000 BD per product. They expect to both
Abdulla and Brothers Est. makes products. They estimate fixed costs of 10,000,000 BD. Its variable costs are 3,000 BD per product. They expect to both produce and sell 25,000 units this year. Requirements: 1. Compute the contribution margin per unit and the breakeven sales volume. 2. How much operating income is budgeted for this year? 3. The company management is believe that they can produce an operating income of 5,000,000 BD if the selling price remains at 3,500 BD and variable costs remain unchanged. Calculate the number of the products that need to be sold to achieve this target. Assume a net income tax rate of 25%
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