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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?
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