HASF ltd makes pipes of one type only. Budget for the year 2020

Units Rupees

Sales 150,000 3,000,000

Variable Fixed

Direct material 600,000

Direct labor 450,000 766,000

Factory over head 300,000

Administration overhead 554,000

Note: No need to enter currency symbol and comma and % just type numbers 2 decimal number and percentages (if needed) according to excel (for example: 10000 or 10.65)

Required:

1. Contribution margin per unit

2. Contribution margin ratio

3. Breakeven point in units

4. Breakeven sales

5. Margin of safety ratio

6. HASF is considering acquisition of a new machine this will add RS 262,500 to fixed production overheads but will reduce the labor cost by 50% after this changes what will new break even sales and break even sales in units

break even sales

break even sales in units