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Financial & Managerial Accounting. Part-2 | Marks: 101 1. a. What is a BEP? Why there is only one BEP in a production schedule? [2
Financial & Managerial Accounting.
Part-2 | Marks: 101 1. a. What is a BEP? Why there is only one BEP in a production schedule? [2 marks] b. Johnson & Johnson Company manufactures and sells a single product. The company's sales and expenses for the last quarter are as follows: Total Per Unit (Taka) (Taka) Sales 6,00,000 50 Less: Variable expense 3,60,000 30 Contribution margin 2,40,000 20 Less: Fixed expenses 2.14,400 Net income 25.600 Requirements 18 marks): a) What is the quarterly break-even point in units sold and in sales Taka? b) How many units would have to be sold each quarter to earn a target profit of Tk. 7,00,000? c) Compute the company's margin of safety in both Taka and percentage. d) Refer to the original data above. If the company were able to reduce its variable expenses by Tk. 3 per unit, and increase fixed expense by Tk.8500 then what would be the new monthly break- even point in units and sales amount? e) If the company can manage to increase the sales by 25% what will be the impact on net operating incomeStep by Step Solution
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