11. A company produces a product and sells 32,000 units a month at a selling...
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Accounting
11. A company produces a product and sells 32,000 units a month at a selling price of 32. Direct material cost is 13 per unit and direct labour cost is 10 per unit of output. The total fixed cost is 164,880. The factory has a maximum production capacity of 40,000 units. (Must show all calculation for full marks) (i) Calculate the break-even level of output. (2 marks) Answer: (ii) Calculate the margin of safety ratio? (2 marks)
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