Question
please help me this solution please North Sydney Ltd sells hand painted lamps at an average price per unit of $70. Variable manufacturing costs are
please help me this solution please
North Sydney Ltd sells hand painted lamps at an average price per unit of $70. Variable manufacturing costs are estimated to be $30 per unit. Fixed costs are expected to amount to $160,000 per year.
Required:
1.Calculate the contribution margin per hand painted lamp. (1 mark)
2.Calculate the contribution margin ratio per hand painted lamp. (1 mark)
3.Calculate the break-even pointin sales dollars. (2 marks)
4. If the company's fixed costs reduce what will happen to the break-even point calculated above in (3)? (No calculations are required) (1 mark)
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