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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
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)
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