Question
Maya Ltd. Manufactures sweat pants labeled IDeal. The variable cost per units is kes 500. The company adds a markup of 60% of the variable
Maya Ltd. Manufactures sweat pants labeled IDeal. The variable cost per units is kes 500. The company adds a markup of 60% of the variable cost to arrive at the retail sales price. The company incurs fixed costs of 24,000,000 per annum (25% of which are manufacturing overhead costs). During financial year 2020, the company sold 200,000 units.
The management has requested you to calculate the below figures for them to make critical decisions
a) Contribution margin per units
b) Total contribution margin
c) Breakeven point in units
d) Breakeven point in dollars
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