Question
XYZ Company manufactures plastic which it sells to other industrial users. The monthly production capacity of the company is 1200000 kilos. Selling price is p2
XYZ Company manufactures plastic which it sells to other industrial users.
The monthly production capacity of the company is 1200000 kilos. Selling price is p2 perkilo. Its cash requirements have been as follows:
a.) Fixed monthly payments amount to p250000 while
b.) Variable cash payments are 50% of sales.
Required: prepare cash break-even chart to project the relationship between the company's cash need and cash resources.
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Managerial Accounting Decision Making and Performance Management
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