Relax Pte Ltd produced and sold $37,500$ luxury scented candles during the year $2022$ at $$80$ per unit. Total fixed cost was $$900,000$ while variable cost was $$50$ per unit.

Determine the breakeven point in units and in $$.$

Compute the margin of safety in $ and in $\%.$

User

The company is planning to use a new material throughout $2023.$ This will reduce

variable costs by $10\%.$ Fixed costs are expected to remain unchanged.

As the factory's output is nearing its annual output capacity of $38,000$ units, the

company plans to increase the selling price by $5\%.$ This will decrease sales volume by

$20\%.$

Use cost$-$volume$-$profit analysis to determine whether the company should proceed

with the plan