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Louis Ltd has the following information available for one of its best-selling products: The selling price is 24 per unit. 3a) Calculate Louis Ltd.'s variable
Louis Ltd has the following information available for one of its best-selling products: The selling price is 24 per unit. 3a) Calculate Louis Ltd.'s variable cost per unit and total fixed costs for February. (6 marks) 3b) What is Louis Ltd.'s break-even point in units and for February? (3 marks) 3c) What is Louis Ltd.'s margin of safety in units for February?. (2 marks) 3d) Discuss why it is important for companies to know BOTH their Break even Points and their Margin of Safety. (5 marks) Louis Ltd also makes the products A, B and C: 3e) Should Louis close the 'Product B' line? (Give financial/ quantitative reasons only) (6 marks) 3f) Each product uses special components. These are in short supply due to a production problem. Given this information how should the production of the products be prioritized
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