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Q2:CVP illustration : An organisation manufactures a single product which is sold for $60 per unit. The organisations total monthly fixed costs are $45,000 and
Q2:CVP illustration :
An organisation manufactures a single product which is sold for $60 per unit. The organisations total monthly fixed costs are $45,000 and it has a contribution to sales ratio of 50%. This month it plans to manufacture and sell 5,000 units.
Required:
What is targeted sale revenue and units to achieve a desired profit level of $180,000
Required: Explain what are purposes of Margin of Safety and purpose of CM ratio
with explain the answer
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