Question 3

ABC Company has the following information of the product that sold in market:

No of Units

Variable Cost @ 5Rm per units

Fixed Cost

Total Cost

Selling price @ 10Rm per units

Profit (Loss)

Selling price per unit Fixed cost

Contribution margin ratio Targeted profit

Safety margin in units

: Rm 50

: Rm 100,000 : 50%

: Rm 200,000 : 2,000 units

Required:

1. Calculate the break-even point of the company in dollars and units.

2. Calculate the number of Expected sales in units.

3. Calculate the targeted sales in amounts