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Habibi MMC sells one product for which data is given below:
Selling price 14
Variable cost 10
Fixed cost 6The fied costs are based on a budgeted level of activity of 5400 units for the period.
Question 6 How many units must be sold if Habibi MMC wishes to earn a profit of 10000 AZN for one period
Question 7 What is Habibi MMC margin of safety for the budget period if fixed costs prove to be 20% higher than budgeted?
Question 8 If the selling price and variable cost increase by 20% and 12% respecteively by how much sales volume change compared with the original budgeted level in order to achieve the original budgeted profit for the period?Download or read online the PM notes here https://opentuition.com/acca/pm/
The topic is CVP analysis (Chapter 8).You can access the lecture here https://opentuition.com/acca/pm/acca-performance-management-pm-lectures/
If you do not yet know the basics – what is contribution – the difference between fixed and variable costs, etc you should refer to the MA notes and associated lectures https://opentuition.com/acca/ma/
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