Answered step by step
Verified Expert Solution
Question
1 Approved Answer
MAA103 Participation Question - Week 3 ( 3% of total assessment). Download and save this document. Prepare your answer on the Word document. Upload to
MAA103 Participation Question - Week 3 ( 3% of total assessment). Download and save this document. Prepare your answer on the Word document. Upload to the Submission Box located under Assessment Tile by Sunday night, 17th July 2022. Question (3+1+1+1+3=9marks) Handy's, Homewares makes and sells a single product. Individual product details are as follows: a) Calculate the contribution margin. (3 marks) Contribution=Revenue- Variable cost =$84$14 =$70 (1 mark) b) Calculate the breakeven point in units. (1 mark) c) Calculate the expected profit from the estimated sales. d) If Handv's, required a profit of $96000, what level of sales dollars would be required? (1 mark) e) Handy's has an offer from a new overseas client to purchase the product for $70. To supply overseas, the variable cost would increase by $6 per unit. Fixed costs would not change. Should Handy's, accept the special order from overseas? Justify your
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started