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Acoustic Soda Company Limited currently manufacture and sells 19,500 tons of its products. The following data relates to its product Selling price per ton 30

Acoustic Soda Company Limited currently manufacture and sells 19,500 tons of its products. The following data relates to its product

Selling price per ton 30

Variable cost per ton 21

Fixed cost is estimated to be Sh. 180,000/=

Required

  1. Calculate the contribution margin per unit (2 MARKS)
  2. Calculate the Contribution Margin Ratio (2 Marks)
  3. What is the Company's Break -Even sales in Units and in shilling (4 Marks)
  4. Prepare the Income statement when the sales units are 19,500 tons

(5 Marks)

  1. What will be the impact on Break-Even point if the selling price is increased 35/ per ton? ( 3 marks)
  2. Given the facts as above and fixed cost increase by 16,000/=, what would the net operating Income/Loss (4 Marks)

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