Question
Ruiz ehf sells a product at 90 kr / pcs. The variable cost of the product is 50 kr / pc. Today, Ruiz sells the
Ruiz ehf sells a product at 90 kr / pcs. The variable cost of the product is 50 kr / pc. Today, Ruiz sells the product for a total of ISK 270,000 per month. Fixed production costs are a total of ISK 40,000 per month and sales and management costs are ISK 35,000 per month. Company executives are considering raising the product price by 10% as the fixed cost is rising in operations: production cost by 10% and sales and management costs by ISK 1,500 per month.
1. Calculate the current break-even point in units in Ruiz's operations
2. Calculate the company's profit and margin of safety, etc. current status
3. Calculate a break-even point in units, etc. changed assumptions ie 10% price increase and changed costs, as seen here above
4. Calculate profits in Tuiz's operating profit. changed assumptions (10% increase in prices and changed costs, as seen here above) and sales volume of 3,300 pieces
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