Question $2$:

In $2018$ ABC Company produced $2000$ units.

The variable cost per unit $=$ $ $5$ and the total variable cost $=$ $ $10,000$

The fixed cost per unit $=$ $ $3$ and the total fixed cost $=$ $ $6,000$

Required:

$1-$ In $2009$ the company plans to produce $3000$ units compute the total cost and cost per unit.

$2-$ In $2020$ the company plans to produce $1500$ units compute the total cost and cost per unit.

Question $3$:

Variable cost per unit $$20$ price $$30$ total fixed cost $ $50,000$

Expected sales $8000$ units$-$ target profit $ $20,000$

Required:

$1-$ Compute break$-$even volume and value

$2-$ Compute the quantity of sales that achieve the target profit

$3-$ Compute the safety margin ratio.

$4-$ If the variable cost increases by $20\%,$ what is the effect on break$-$even volume.

$5-$ If the fixed cost decreases by $20\%,$ what is the effect on break$-$even volume.