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I will leave a thumbs up! Thank you in advance! PART A [13 Marks) ARG Inc manufactures and sells a single product. The following data
I will leave a thumbs up! Thank you in advance!
PART A [13 Marks) ARG Inc manufactures and sells a single product. The following data have been extracted from the current year's budget: Sales and production (units) 5,000 Variable cost per unit $50 Fixed cost per unit $70 Contribution margin ratio 75% The selling price per unit for next year is to be 8% above the current year's budgeted figure, whereas both the variable cost per unit and the total fixed costs are forecast to increase by 12% above their budgeted level in the current year. The target for next year is that total profit should remain the same as that budgeted for the current year Required: a) Calculate the CURRENT YEAR budgeted: i. Contribution per unit: [2 marks] il. Total profit [3 marks) 111. Breakeven point in units [2 marks] b) Calculate the number of units the company should produce and sell next year to achieve a target profit of $400,000 [6 marks] W a Step by Step Solution
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