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Faidika limited deals in the manufacture of product X. The variable cost of production per unit of product X is Sh. 2 whereas the fixed...

      

Faidika limited deals in the manufacture of product X. The variable cost of production per unit of product X is Sh. 2 whereas the fixed cost is Sh. 15,000. It has been estimated that if the unit selling price of product X is set at Sh. 4.40, the sales volume will be 7,500 units whereas if the unit selling price of product X is set at Sh. 4.00, the sales volume will be 11,000 units.
Required.
i) The budgeted profit for each of the above set selling prices.
ii) The break-even point for each of the above set selling prices.
iii) The margin of safety for each of the above set selling prices.
iv) The break even chart for the price of Sh. 4.40 per unit for production levels of 0,5,000 and 10,000 units of X.

  

Answers


Kavungya
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Kavungya answered the question on May 17, 2021 at 15:15


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