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b) XYZ Company distributes a single product. The company's contribution format income statement for the most recent month is given below: Particulars Taka Per unit
b) XYZ Company distributes a single product. The company's contribution format income statement for the most recent month is given below: Particulars Taka Per unit (Taka) Sales (18,000 units) 5,40,000 30 Less: Variable Expense 2,16,000 12 Contribution Margin 3,24,000 18 Less: Fixed Expense 2,80,000 Net operating Income 44,000 Instructions: i Compute the company's break-even point in units and in sales taka. [02] ii. Compute the company's margin of safety percentage. [01] iii. Assume that next year management wants the company to earn a profit of at least Tk. 55,000. What sales level in units and in sales taka is required to meet this target profit? [02] Refer to original data, if variable expense is increased by Tk. 2 per unit and fixed expense is decreased by Tk. 40,000, what will be the new break-even point in sales taka? [03] iv
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