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Boram Ltd produces pavers. The management accountant has been looking at the costs involved in the making of those pavers, she is wanting to understand
Boram Ltd produces pavers. The management accountant has been looking at the costs involved in the making of those pavers, she is wanting to understand more about the breakeven point. The following data relates to 2018. Item 5 Selling price per paver 50.00 Variable production cost 30.00 Variable selling cost 5.00 Contribution per paver 15.00 Fixed production cost based on annual sales of 20,000 pavers 5.00 Fixed selling costs, based on annual sales of 20.000 pavers 1.00 Prot per paver 9.00 For the management accountant the following is required: a. Calculate the level of production needed for Boram Ltd to break even. b. Boram Ltd is thinking otdoubling their production. To do so, they will have to occupy an additional premises at an annual rent of $300,000. What will be the new breakeven point? c. What will be the New Margin of Satetv
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