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Masafi Company manufactures and sells one product Given below is information that pertains to its first year of operations. Variable Costs per unit: Variable selling
Masafi Company manufactures and sells one product Given below is information that pertains to its first year of operations. Variable Costs per unit: Variable selling Variable Administrative Variable Manufacturing overhead Direct Materials Direct labor AED2.50 AEDIS AED6.50 AED 5.50 AED7.00 Fixed Costs per year Fixed Manufacturing overhead Fixed Selling and administrative AED75,000 AED43,000 During its fint year of operations, it produced 25,000 units and sold 22,000 units. The selling price of the company's product is AED90.00 per unit. UESTION 4 a. Calculate the break-even point in units under the variable costing method. (3 marks) b. Calculate the difference between the operating income of the above two statements and explain where it is coming from
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