Old MathJax webview

Old MathJax webview

Thr following are the data for a firm for the next year:

Selling price per unit N$2 000

Variable cost per unit N$1 000

Total fixed cost N$600 000

Expected sales (units) 1 200

1. Breakeven volume 2. Breakeven value 3. Margin of safety ratio 4. In the endeavor to increase sales, the firm is considering introducing either a 12% discount or a commission of N$100. Calculate the break-even point in units of each of these options and indicate which of these will be the best strategy