[kamsemaj]

Total costs incurred at various output levels for Glaskol Ltd. for a processing operation in their Kingston factory have been measured as follows:

Output Units
11,500
12,000
12,500
13,000
13,500
14,000
Total Costs
$102,476
$104,730
$106,263
$108,021
$110,727
$113,201
Required:
Calculate:
a. The variable cost per unit
b. The fixed cost
c. The break-even output assuming the selling price per unit is $10.60
d. The target sales in units and sales dollars if Glaskol Ltd. wants to make a profit of $30,000 before taxes.
e. What is the margin of safety for Glaskol Ltd if the budgeted output is 12,500 units?

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