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Rufus Manufacturing Company produces and sells one product, a woven tray. Selling price is $20. Variable cost is $8 per unit. The company's monthly fixed
Rufus Manufacturing Company produces and sells one product, a woven tray. Selling price is $20.
Variable cost is $8 per unit. The company's monthly fixed cost is $1200.
REQUIRED:
- Calculate the breakeven point in sales revenue and in units. ()
- How many units does the company need to sell to make a target profit of $600? (1 mark)
- Draw a profit chart for sales of up to 400 units. ()
- What is the margin of safety in sales revenue if actual sales revenue is $4000?
Rufus Manufacturing Company produces and sells one product, a woven tray. Selling price is $20.
Variable cost is $8 per unit. The company's monthly fixed cost is $1200.
REQUIRED:
- Calculate the breakeven point in sales revenue and in units. ()
- How many units does the company need to sell to make a target profit of $600? (1 mark)
- Draw a profit chart for sales of up to 400 units. ()
- What is the margin of safety in sales revenue if actual sales revenue is $4000?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0697789938
