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Q3. MNM Corporation provides you the following accounting information related with a particular product: (1.5 Marks) Particulars Amount (SAR) Selling price per unit 500 Variable

Q3. MNM Corporation provides you the following accounting information related with a particular product: (1.5 Marks)

Particulars

Amount (SAR)

Selling price per unit

500

Variable cost per unit

200

Total fixed cost

240,000

Use cost volume profit analysis to answer the following questions:

  1. Determine the break-even point in units?
  2. Determine the break-even point in sales value SAR?
  3. What will be the pretax profit if company sells 1,200 units of the product?
  4. How many units the company will be required to sell to reach a target pretax profit of SAR 150,000?

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