An Enterprise manufactures and sells Shirts worth $20,000, Blouses worth $25,000, Trousers worth $10,000 and Skirts worth $5,000 every month. The company's total fixed costs per month are $24,000 and the variable cost as a percentage of sales are: on Shirts 60%, on Blouses 68%, on Trousers 80% and on Skirts 40%. The proprietor wonders at what combined sales volume does she really start earning profit. Required: 1. Calculate the Break-Even Sales. 2. If the fixed cost is to be appropriated in the proportion of Sales Volume, calculate the Break-Even Sales for each product. 3. What is the Margin of Safety? Explain its use. 4. Why is the Marginal costing approach suitable for short-term decision-making purposes? 5. Explain how a budget can be used as a tool for managerial planning and control.| I An Enterprise manufactures and sells Shirts worth $20,000, Blouses worth $25,000, Trousers worth $10,000 and Skirts worth $5,000 every month. The company's total fixed costs per month are $24,000 and the variable cost as a percentage of sales are: on Shirts 60%, on Blouses 68%, on Trousers 80% and on Skirts 40%. The proprietor wonders at what combined sales volume does she really start earning profit. Required: 1. Calculate the Break-Even Sales. 2. If the fixed cost is to be appropriated in the proportion of Sales Volume, calculate the Break-Even Sales for each product. 3. What is the Margin of Safety? Explain its use. 4. Why is the Marginal costing approach suitable for short-term decision-making purposes? 5. Explain how a budget can be used as a tool for managerial planning and control.|