Question
Cary's Caravans operates a single-product entity building luxury caravans. Data relating to the product for 2020 were as follows: annual volume 1500 selling price per
Cary's Caravans operates a single-product entity building luxury caravans. Data relating to the product for 2020 were as follows: annual volume 1500 selling price per unit $ 75000 variable manufacturing cost per unit $ 6000 annual fixed manufacturing cost $ 1500000 variable marketing and distribution cost per unit $ 8500 annual fixed non manufacturing cost $ 1150000 Required (i) Calculate the break-even in both units and sales dollars for 2020. (2 marks) (ii) Calculate the margin of safety in both units and sales dollars. (2 marks) (iii) Calculate the profit achieved in 2020 given the annual volume of units sold. (1 mark)
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