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Q3. The following information relates to two products of ABC clothing Inc. Warm Cozy Selling price per unit $8 $12 Variable expenses per unit $2
Q3. The following information relates to two products of ABC clothing Inc.
| Warm | Cozy |
Selling price per unit | $8 | $12 |
Variable expenses per unit | $2 | $6 |
Fixed costs | $2,250 | $2,250 |
Number of pairs sold | 600 units | 200 units |
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Required- (20 marks)
- Calculate Break even sales in dollars for both the products and analyse which is more and better.
- Calculate Break even sales in units for both the products and analyse which is more and better.
- Calculate margin of safety of both products
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