Question: The following details relate to a product made Paxx Ltd for the year ending December 31, 2021

Selling price per unit = $70

Variable cost per unit = $30

Total Fixed cost = $4,000

Budgeted sales in units = 500 units

Required:

A. Calculate the contribution margin ratio

B.. Calculate the breakeven point in units

C. Calculate break-even point in dollars

D. Calculate the margin of safety in units

E. Calculate the budgeted profit for December