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Taharah Industries developed the following information for the product it sells: Sales price RM50 per unit Variable cost of goods sold RM28 per unit Fixed
Taharah Industries developed the following information for the product it sells:
Sales price RM50 per unit
Variable cost of goods sold RM28 per unit
Fixed cost of goods sold RM650,000
Variable selling expense 10% of sales price
Variable administrative expense RM2.00 per unit
Fixed selling expense RM400,000
Fixed administrative expense RM300,000
For the year ended 31 December 2017, Taharah produced and sold 100,000 units of product.
Instructions:
- Prepare a CVP income statement using the contribution margin format for Taharah Industries for 2017. (4
- What was the company's break-even point in units in 2017? Use the contribution margin technique.
- What was the company's margin of safety in dollars in 2017?
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