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Hammond Inc. sells a product for RM60. Variable costs are 60% of sales, and monthly fixed costs are RM54,000. Answer the following questions: (a)

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Hammond Inc. sells a product for RM60. Variable costs are 60% of sales, and monthly fixed costs are RM54,000. Answer the following questions: (a) What is the break-even point in units? (b) ONFIDE [5 Marks] [CO2, PO3, C4] What unit sales would be required to earn a target profit of RM120,000? 15 Marks] [CO2, PO3, C4] Assume they achieve the level of sales required in part b, what is the margin of safety (c) in sales dollars? [5 Marks] [CO2, PO3, C4]

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