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Please answer all questions (A, B, C, D)! Please show work and not just the solution! Thanks Q8: (Chapter 3) Dragon Ltd produces one type
Please answer all questions (A, B, C, D)! Please show work and not just the solution! Thanks
Q8: (Chapter 3) Dragon Ltd produces one type of furniture set and the details per month are as follows: Selling Price (per unit): 2,400 1,550 Variable cost per unit (including labour, material and other costs Fixed cost per month Budgeted production/sales per month (in units) 680,000 1,100 a. Calculate profit or loss expected if budget of selling 1,100 units is to be achieved. (2 marks) b. Calculate how many units need to be sold per month in order to achieve break even point (BEP) and briefly explain what it means for Heaven Ltd. (3 marks) c. If shop aims to make a profit of 459,000 per month, how many units should be sold per month. (2 marks) d. Calculate margin of safety in units as well as percentage terms and briefly explain what it means for Dragon Ltd Step by Step Solution
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