Principles of Management Accounting:

Question 2:

Dhofar Company has the following information:

Selling price per unit	80
Variable cost per unit	50
Total fixed cost	30,000
Target profit	9,500

Calculate the following by using the information given

i. Contribution per unit

ii. PV ratio

iii. BE Sales and BE units.

iv. Sales to achieve target profit.

v. The new break-even point if the selling price per unit is increased to 95.

vi. The new break-even point if variable cost per unit is decreased to 35.

vii. The new break-even point if fixed cost is decreased to 36,000.

viii. Margin of safety in case the company has Sale of 145,000