Answer to Question #290735 in Other for Habtamu Asres

Question

The following data are obtained from the records of a factory Sales (40,000 units @ Br. 25 each) ............ Br. 100,000Less: Variable Costs.............................. 70,000Contribution Margin .............................30,000Less: Fixed Costs ................................. 18,000Net Profit .......................................... 12.000Required: Compute: 1)The number of units by selling which the company will neither loss or gain anything 2)The sales needed to earn a profit of 20% on sales 3)The extra units which should be sold to obtain the present profit if it is proposed to reduce the selling price by 25%4)The selling price to be fixed to bring down its break-even point to Br.500 units under present condition

Answer 1

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