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Required 1.calcute (i) Break-even point (in units and sales dollars); (ii) Margin of safety, MOS (in units); (iii) Operating profit based on forecast yearly sales
Required
1.calcute
(i) Break-even point (in units and sales dollars);
(ii) Margin of safety, MOS (in units);
(iii) Operating profit based on forecast yearly sales for 2022.
(ii) Briefly explain the significance of the break-even point and margin of safety with reference to Y2L Ltd.
Analyse and comment on your answers by comparing the calculations in parts (a)(i) to (iii) and (b)(i).
Based on your analysis, should Y2L Ltd accept the Sales Managers proposal?
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