Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Performance Auditing A Measurement Approach

Authors: Ronell B. Raaum CGAP CGFM, Stephen L. Morgan CIA CGAP CFE CGFM

2nd Edition

0894136607, 9780894136603

More Books

Students also viewed these Accounting questions

Question

clarify and articulate your research methodology;

Answered: 1 week ago

Question

consider how to build on prior learning.

Answered: 1 week ago