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Ahmad Garage Works (AGW) produces parts for the repair shops in Shuwaikh. The company has monthly fixed costs of KWD 330,000 and a contribution margin

Ahmad Garage Works (AGW) produces parts for the repair shops in Shuwaikh. The company has monthly fixed costs of KWD 330,000 and a contribution margin of 75% of revenues.

Requirements:

1. Compute AGW's monthly breakeven sales in KWD.

2. Use contribution margin approach to compute monthly operating income or loss for AGW if revenues are KWD 400,000 and KWD 1,000,000.

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