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plz I need quickly answer B) Pringle Company manufactures cordless telephone. The telephones are sold for Tk. 80 per unit. Variable expenses are Tk. 53
plz I need quickly answer
B) Pringle Company manufactures cordless telephone. The telephones are sold for Tk. 80 per unit. Variable expenses are Tk. 53 per telephone, and fixed expenses associated with the telephone are total Tk. 125,000 per month. Required: i. Compute the company's break-even point in number of telephones and in total sales taka. [02] ii. If the variable expenses per telephone increase as a percentage of the selling price, will it, result in a higher or lower break-even point? Why? (Assume that the fixed expenses remain unchanged). [01] iii. Assume that next year management wants the company to earn a minimum profit of Tk.30,000. How many units will have to be sold and sales taka to achieve the target profit? Verify your answer by preparing a contribution format income statement. [03] Refer to the original data. Compute the company's margin of safety in both taka and percentage form. [01]Step by Step Solution
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