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Your business sells a type of product at RM15 per unit. The contribution margin ratio is 40%. The annual fixed cost is RM48,000. (a) Calculate
Your business sells a type of product at RM15 per unit. The contribution margin ratio is 40%. The annual fixed cost is RM48,000.
(a) Calculate the variable cost per unit.
(b) How many units must be sold to obtain profit before tax of RM12,000?
(c) Calculate the safety margin if the expected sales level is the same as (b). (You will have to calculate BEP first).
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