Question
The Management Accountant of Kafululu Plc has prepared the following budget information for the year ending 31st December 2022 for product A. Annual Fixed Costs
The Management Accountant of Kafululu Plc has prepared the following budget information for the year ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required: a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms.e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00 and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. (f) The total units that should be sold in order to make a profit of K450,000 in 2020
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