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Q.4 Golden Company expects to incur the following cost to produce and sell 70,000 units of its product at Rs. 10 each Variable manufacturing
Q.4 Golden Company expects to incur the following cost to produce and sell 70,000 units of its product at Rs. 10 each Variable manufacturing cost Fixed manufacturing cost Rs. 210,000 Rs. 80,000 Rs. 105,000 Fixed marketing and administrative expenses Rs. 60,000 Variable marketing expenses Required: 1) Find out the amount of contribution margin, contribution margin ratio and per unit contribution margin. 2) Compute the break even amount and units. 3) Calcute the amount of margin of safety and margin of safety ratio. 4) The management desires a profit of Rs. 300,000. Find out the amount of total sales and units sale to achieve the desires profit.
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