ABC Ltd. sells a product for $50 per unit. The variable cost per unit is...

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Accounting

ABC Ltd. sells a product for $50 per unit. The variable cost per unit is $30, and the total fixed costs are $200,000.

Requirements:

(a) Calculate the break-even point in units. (b) Determine the sales units required to achieve a target profit of $100,000. (c) Compute the margin of safety if the actual sales are 12,000 units. (d) Discuss the implications of changes in variable cost on the break-even point.

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