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Gamma Retail Company sells household appliances. The company's total fixed costs are SAR 80,000, the selling price per unit is SAR 150, and the variable

Gamma Retail Company sells household appliances. The company's total fixed costs are SAR 80,000, the selling price per unit is SAR 150, and the variable cost per unit is SAR 90. Calculate the breakeven point in units and sales revenue. Determine the margin of safety in units and sales revenue if the company sells 800 units.

Requirements:

  • Calculate the breakeven point in units.
  • Determine the breakeven sales revenue.
  • Calculate the margin of safety in units and sales revenue.

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