Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cosmic Ltd manufactures plastic toys. The details about one of its toys, the light saber are summarised in the table below. Current units sold 13,000

image text in transcribed

Cosmic Ltd manufactures plastic toys. The details about one of its toys, the light saber are summarised in the table below. Current units sold 13,000 units Selling Price per light saber $4 Unit variable manufacturing cost $2.50 Fixed manufacturing cost $8,000 Unit variable selling & administrative costs $0.50 Fixed Selling & Administrative costs $2,000 Required: 1. Calculate: 1a. unit contribution margin (per light saber) 1b contribution margin ratio (1.5 mark) (1 mark) ne viene a do 2a. 2b. Calculate the break-even point in: units (number of light sabers) dollars (sales revenue) (1.5 marks) (1 mark) 3a. 3b. Explain what margin of safety (MOS) means. Calculate MOS in percentage terms, given the current sales level of 13,000 units (1.5 mark) (1.5 mark)

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_2

Step: 3

blur-text-image_3

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

Auditing Information Systems A Comprehensive Reference Guide

Authors: Jack J. Champlain

1st Edition

0471168904, 978-0471168904

More Books

Students also viewed these Accounting questions

Question

Distinguish between filtering and interpreting. (Objective 2)

Answered: 1 week ago