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argent Q4. Caterpillar Company produces and sells a single product. The company's income statement for the most recent month is given below: Tk 250,000 Tk
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Q4. Caterpillar Company produces and sells a single product. The company's income statement for the most recent month is given below: Tk 250,000 Tk 48,000 Tk 60,000 Tk 12,000 Tk 30.000 Sales (5,000 units at Tk 50 per unit) Less manufacturing costs: Direct materials Direct labor Variable factory overhead Fixed factory overhead Gross margin Less selling and other expenses: Variable selling and other expenses Fixed selling and other expenses Net operating income Note: There are no beginning or ending inventories. Required: Tk 150.000 Tk 100,000 Tk 20,000 Tk 40.000 Tk 60.000 Tk 40.000 [Marks: 3 x 4 = 12] b. If the company wants a target profit of Tk 30,000 for the next month, how many units of product they have to sell? c. Find margin of safety in percentageStep by Step Solution
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