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TSS Company manufactures and sells a specialized cordless telephone. The company's sales and expenses for last year are given below: Particulars Total (Tk) Per unit
TSS Company manufactures and sells a specialized cordless telephone. The company's sales and expenses for last year are given below: Particulars Total (Tk) Per unit (Tk) Sales 12,00,000 60 Less: Variable expenses 9,00,000 45 Contribution margin 3,00,000 15 Less: Fixed expenses 2,40,000 Net Operating Income 60,000 Requirements: a. Compute the company's contribution margin ratio? b. What is the break-even point in units sold and in sales Taka? C. Assume the management of the company wants to earn a profit of at least Tk 90,000. How many units and Taka have to be sold to meet this target profit? d. Calculate margin of safety in percentage and Taka
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