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Foam Ltd, a memory foam mattress manufacturer, has the budget set out below for its one product for the coming year: '000 '000 5,000 Sales
Foam Ltd, a memory foam mattress manufacturer, has the budget set out below for its one product for the coming year: '000 '000 5,000 Sales revenue (20,000 units) Manufacturing costs: variable 1,400 fixed 1,600 Other production costs: variable 400 fixed 1,200 Total costs: 4,600 Budgeted profit 400 Answer the following questions by writing the appropriate numbers in the blanks NB! Write numbers only, do not write any symbols! 1) What is the selling price of each unit? 2) What is the variable cost of each unit? 3) What is Foam's contribution per unit? 4) What is Foam's break-even point in units? units/mattresses 5) How many mattresses would Foam Ltd need to sell to achieve a target profit of 1,000,000? units/mattresses 6) What is Foam's margin of safety as a %? %
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