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Solve as soon as possible. I will give thumbs up for sure. Do all the maths. Presented below is the cost of Mohammad Limited for
Solve as soon as possible. I will give thumbs up for sure. Do all the maths.
Presented below is the cost of Mohammad Limited for the year ending 31 December, 2018. Sales (2,00,000 cups of $2.50 each) $5,00,000 Variable Cost (2,00,000 cups of $1.50) $3,00,000 Fixed Cost $1,00,000 Required: 1 What is the break-even point in dollar sales and in units, in 2018? Use formula method. Suppose in 2019, to develop product quality, a new plant expansion will take place which will add $50,000 to the existing fixed costs and increase per unit variable cost by 40%. How many additional cups would have to be sold to in breakeven? By selling how many units in 2019, will the company be able to earn pre-expansion amount of Net operating income even after expansion. Use Equation MethodStep by Step Solution
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