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PPP LTD currently provides a single service. The cost per unit is as follows. GH Selling price 130 Direct materials 22 Direct labour 15 Direct

PPP LTD currently provides a single service. The cost per unit is as follows.

GH

Selling price 130

Direct materials 22

Direct labour 15

Direct expenses 3

Variable overheads 10

Total fixed cost for the period amount to GH 1.6m. The projected sales unit is 28,000.

You are required to calculate:

a)the breakeven point, in sales units and value per month;

b)the margin of safety for next month;

c)the budgeted prot for next month;

d)the sales required to achieve a prot of GH250,000 in a month.

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