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WBS is a stapler producer in Namibia. Business has been performing well over the last quarter with the Sleek Staplers. They now want to introduce
WBS is a stapler producer in Namibia. Business has been performing well over the last quarter with the Sleek Staplers. They now want to introduce the Sleek II version and they would like to thus determine the envisaged breakeven. Their expected sales turnover is 50 000 units with an envisaged selling price per unit of N$44; the Total fixed costs is N$400 000; Total Variable costs is N$ 600 000. Kindly use this Budget information to determine: 1. The break-even point in units (3 MARKS) 2. The break-even value (2 MARKS) 3. The margin of safety (2 MARKS) 4. If a special discount of N$5.00 for every product purchased is introduced, what will the BEP in units be? Would a special discount be an advisable strategy? Please elaborate briefly
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