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Question 1 Premier Manufacturers is planning to introduce a new product in the next period 2022. It is expected that 10000 units can be sold
Question 1 Premier Manufacturers is planning to introduce a new product in the next period 2022. It is expected that 10000 units can be sold at a selling price of 75. The production manager has put forward two possible production methods. The following financial information has been prepared for each of the alternatives. Capital Expenditure Maximum Capacity(units) Alt A 800,000 15000 Alt B 600,000 12000 Unit Costs Direct materials Direct Labour Variable Production Costs Fixed production Costs 15 15 5 on on on 10 20 20 700000 200000 Required a) For each of the alternatives determine i) Breakeven point in units ii) Breakeven point in revenue iii) The Margin of Safety
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