2. William Ltd makes leather purses. It has drawn up the following budget for its...
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Accounting
2. William Ltd makes leather purses. It has drawn up the following budget for its current financial period:
Selling price per unit RM 12
Variable production cost per unit RM 4.20
Fixed production costs RM 235,000
Fixed selling and administration costs RM 198,000
Sales 70 000 units
Required:
The company plans to increase the sales volume by 35% for the next year. Calculate the break-even (unit and value) and margin of safety of the company (unit)
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