Question
An organisation manufactures a single product which is sold for $60 per unit. The organisations total monthly fixed costs are $54,000 and it has a
An organisation manufactures a single product which is sold for $60 per unit. The organisations total monthly fixed costs are $54,000 and it has a contribution to sales ratio of 40%. This month it plans to manufacture and sell 4,000 units.
Required:
What is the organisations margin of safety this month (in units)?
What is the breakeven point in unit for this month?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Performance Auditing A Measurement Approach
Authors: Ronell B. Raaum CGAP CGFM, Stephen L. Morgan CIA CGAP CFE CGFM
2nd Edition
0894136607, 9780894136603
