Question
: Your company has reviewed its new product that it introduced last year, and it has been found that the annual sales It amounts to
: Your company has reviewed its new product that it introduced last year, and it has been found that the annual sales It amounts to (8,000) units, the unit selling price is (140) dinars, and annual fixed costs are (27,000) dinars and the variable cost of the unit (60) dinars. You are asked to answer the following, using an analysis Tie level at it: 1- What is the current break-even size, calculate it algebraically and graphically. 2- Calculate the profit under the current sales volume. 3- To what extent can the sales volume be increased if the company wants to achieve net profits that increase? (25%) of the profit achieved under the current prevailing situation, that is, in light of the current sales volume? 4- To what extent can fixed costs be reduced, if the company wants to achieve net profits that increase? (20) percent of the profit achieved under the current prevailing situation, that is, in light of the current sales volume?
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