Question
Question 1: (7 marks): One of the industrial companies produces a product (E), and it sells a unit of it at a price of 60
Question 1: (7 marks):
One of the industrial companies produces a product (E), and it sells a unit of it at a price of 60 riyals, and the cost of producing and selling the unit is the following: direct materials 15 riyals, direct wages 9 riyals, indirect industrial variable costs 6 riyals, and marketing costs 12 riyals. The total fixed costs of the company are 900000 riyals, distributed between industrial, marketing, and administrative activities at rates of 50%, 30%, and 20% respectively.
Required:
A- Calculating the break-even point in units and value.
B- Calculating the margin of safety ratio if the planned sales are 55000 units with a comment on the result and suggesting what it deems appropriate.
C- If the selling price increased by 25%, variable costs increased by 20%, fixed industrial costs increased by 10%, and fixed marketing costs rose to an amount of 300000 riyals, which affected the break-even point with the interpretation of the result.
D- Calculating the number of units to be sold to achieve a 25% safety margin (using the original data).
E- If the company wants to make a profit of 20% of sales, calculate the value of sales that achieve the company's goal (using the original data).
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all the infromation are written. please solve whatever you know
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