The budgeted data of a company is given below.
Per unit ($)
Material 36
Labour 22
VOH 20
Selling price 120
Budgeted production and sales are 5,000 units and fixed costs are $60,000.
1. What is the break-even point?
2. What is the total profit?
3. What is the margin of safety?
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CVP analysis and short term decision question
4y ago#1Contribution per unit = 120 - 36 - 22 - 20 = 42.
You should be able to solve these basic questions easily if you read Chapter 8 of our MA2 notes.
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