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Hypothetically, a sales revenue and direct costs for a tonne of one of the Unilever product OMO is 10M and 6M respectively. Total fixed cost
Hypothetically, a sales revenue and direct costs for a tonne of one of the Unilever product OMO is 10M and 6M respectively. Total fixed cost for the year ending March 2022 was 160M. Calculate Breakeven of sales in both unit and cash, Contribution margin ratio, and Operating leverage (assuming actual sales quantity of 70M units was increased by 10%). Also discuss each metric and how Breakeven point impacts on profitability ratio.
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