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Sibon ple manufactures soft toys for the European market. The costs incurred by the firm are as follows: Materials (per toy) Wages (per toy)
Sibon ple manufactures soft toys for the European market. The costs incurred by the firm are as follows: Materials (per toy) Wages (per toy) Packaging (per toy) Rent of premises Machinery hire Marketing and administration 5 4 3 5,000 3,000 1.000 The soft toys sell for an average price of $15. The company's capacity of Sibon plc is 2,000 toys per year. Required 1- Calculate the variable costs and the fixed costs. (2 points) 2- Calculate the margin of safety. (1 point) 3- When the business breaks-even, what it the total revenue? (2 points) 4- Is the capacity of the business aligned with the potential breakeven point in quantity? Explain your answer based on the given and your previous answers. (2 points)
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