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Hobbs Company produces one product for which following is information is available. Product A Selling price $ per unit 6.00 Direct Material Direct Labor
Hobbs Company produces one product for which following is information is available. Product A Selling price $ per unit 6.00 Direct Material Direct Labor Variable overhead 2.50 1.40 1.10 Total Fixed cost $ 120,000 per annum 200,000 per annum Sales units Required: a) Calculate contribution margin per unit. (2) b) Calculate break even point in units. (2) c) Calculate break even point in sales value.(2) d) Calculate profit for the year based on total contribution. (2) e) Calculate Margin of safety in units and percentage of sales. (2)
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