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Poppee Ltd produces and sells luxury knitwear. The company expects to sell 1,350 jumpers at a price of 24 per jumper. The variable expenses are
Poppee Ltd produces and sells luxury knitwear. The company expects to sell 1,350 jumpers at a price of 24 per jumper. The variable expenses are 14 per unit and fixed costs are 9,350.
Required:
- Calculate the Break Even Point in number of units (2 marks).
- Calculate the Break Even Point in value of sales (2 marks).
- Calculate the Margin of Safety in units and value of sales (4 marks).
- How many units must the company produce to reach a target profit of 35,000 (4 marks)?
- What value of sales does the company need to generate a profit of 21,000 (4 marks)?
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