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Q2 c) Goterborg is a Newspaper producing company at the centre of Accra. The company is making a tactical conclusion about next year's operations
Q2 c) Goterborg is a Newspaper producing company at the centre of Accra. The company is making a tactical conclusion about next year's operations and has this available information on the product. Marginal Income Statement per Unit Selling Price Direct Material Direct Labour Variable Overhead GH 45 9 6 3 18 The fixed cost of the company is GH67,000 per annum. They budgeted to sell 30,000 units within next years. Required: Determine the following: a. Break-even point in units and sales. b. Contribution to Sales Ratio c. The number of units to be sold to achieve a target profit of GH75,000 per annum d. The level of sales to achieve a profit of GH75,000 per annum e. The number of units required to maintain a profit of GH75,000 if marginal cost increases to GH21 and fixed cost increased to GH90,000 but selling price remains the same. f. Margin of safety percentage g. The profit for the 30,000 budgeted units of sales
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