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The following is information about QRS Limited, a manufacturer of bookcases: $400 per unit $160 per unit Selling Price Variable Manufacturing Costs Other Variable Costs
The following is information about QRS Limited, a manufacturer of bookcases: $400 per unit $160 per unit Selling Price Variable Manufacturing Costs Other Variable Costs Fixed Manufacturing Costs Other Fixed Costs $50 per unit $400,000 $160,000 (Each of the following questions are independent of each other.) Required: 1. What is the break-even point (in units) of bookcases? (3 marks) 2 How.manybookcases must RS sellto achieve a targetinrofit of $200.0002 - hn R x R 0 W D L = O A (Each of the following questions are independent of each other.) Required: 1. What is the break-even point (in units) of bookcases? (3 marks) 2. How many bookcases must QRS sell to achieve a target profit of $200,000? (3 marks) 3. If QRS Limited can decrease fixed manufacturing costs by $70,000, with an upgrade in raw material quality that will cost QRS an additional $20 per unit, would you recommend the change? Explain why. (6 marks) You must show and label all of your work (including dollars versus units) so that it is easy to follow and mark. All calculations should be shown using the following symbols: add (+), subtract (-). multiple (x), divide (1) benannt whole number (1238 98 to 1 239)
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