[Rognar]

Ayiku Ltd is a manufacturing company that produces one standard type of product. The following information relates to the company.

S

8

Variable cost per unit

12

Selling price per unit

2,400

Total fixed cost

Required:

a. Calculate

i The break-even point in units.

The sales value at the break-even point.

The C/S ratio

iv. The quantity of goods to be sold by the company in order to make a profit of $600

The value of sales that will result in a profit of $600.

b. Prepare a statement of profit showing the profit of the company where the quantity in (iv) above is produced.

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