Question
TRUDO Investments ltd produces and sells top range dance shoes. The company expects to sell 1,450 dance shoes at a price of 28 per
TRUDO Investments ltd produces and sells top range dance shoes. The company expects to sell 1,450 dance shoes at a price of 28 per pair. The variable expenses are 18 per unit and fixed costs are 8,250. Required: a) Calculate the Break Even Point in number of units (4 marks). b) Calculate the Break Even Point in value of sales (4 marks). c) Calculate the Margin of Safety in units and value of sales (4 marks). d) How many units must the company produce to reach a target profit of 36,000 (4 marks)? A e) What's the value of sales the company needs to generate a profit of 25,500 (4 marks)?
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