Question
Use the data below to answer questions 17 - 18 Homecare Ltd has the following information regarding the production and sale of its household products.
Use the data below to answer questions 17 - 18
Homecare Ltd has the following information regarding the production and sale of its household products.
| Year | Sales | Variable costs | Fixed costs | Total costs | Net profit | Contribution | Contribution % margin |
| 2019 | 24,000 | 9,600 | I | 18,000 | II | III | 60% |
| 2020 | I | 14,000 | II | 21,000 | 9,000 | 16,000 | III |
Question 17
With a selling price of 20 and a variable cost of 8 (per unit), what is the breakeven point in units in the year 2019?
Question 18
What is the margin of safety in units in 2019?
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Managerial Accounting
Authors: John Wild, Ken Shaw
6th Edition
9781259726972
