glow Ltd manufacturers and sells a face creak to health and beauty salons in northern suburbs

Question 14 Question (8 marks) Glow Ltd manufactures and sells a face cream to health and beauty salons in the northern Suburbs. The details about the face cream are summarised in the table below Current units sold Selling Price per jar of cream Unit variable manufacturing cost Total Fixed manufacturing cost Unit variable selling & administrative costs Total Fixed Selling & Administrative costs 20,000 units $10 $5.50 $40,000 $0.50 $20,000 Required: 1. Calculate: 1a. unit contribution margin (per jar of cream) 1b. contribution margin ratio 2. 2a. 2b. Calculate the break-even point in: units (jars of cream) dollars (sales revenue) . . 3b. Explain what margin of safety (MOS) means. Calculate MOS in percentage terms, given the current sales level of 20,000 units Download the