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Fourth case produces oneFacilitiesprojectaIt sells it at a price of 70 riyals per unit, and producing the unit requires variable costs of 40 riyals. The
Fourth case produces oneFacilitiesprojectaIt sells it at a price of 70 riyals per unit, and producing the unit requires variable costs of 40 riyals. The fixed costs amount to 700,000 riyals. The facility aims to achieve a target profit of 20% A return on invested capital of 400,000 riyals. Required 1- Determine the break-even sales volume in units? 2 - Determine the break-even value in riyals? 3- Determine the sales volume in units and the break-even value in riyals necessary to achieve the target profit determined by facility management. Fifth case Below are the expected data for the current year Facilities: sales: 400,000 riyals Variable costs: 200,000 riyals Fixed costs: 80000 Riyal Required: Explain the effect of each of the following cases on the break-even point, noting that there is no correlation between any of the casesThe following: a- 5% Reduction in fixed costs. B-10\% Increase in sales. C- 5\% Increase in fixed costs, 9% increase in sales Dr- 10% reduction in variable costs, 5% increase in fixed costs
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