Question 3

a)Robest Industries produces only one Product. The following revenues and cost have been estimated for the forthcoming month:

Selling price, $ 250 per unit (SP)

Variable cost, $ 100 per unit (VC)

Fixed Cost, $ 56,000

The Manager of the firm wishes to know the following:

1.Calculate contribution margin per unit

2.Calculate contribution margin ratio.

3.Calculate BEP in units

4.Calculate BEP in sales.

5.Calculate sales value in $ to earn profit of $50,000