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Question - The following information is related to CTH Corporation which manufactures a single product:
Selling price per unit: SAR 800
Variable cost per unit: SAR 240
Total fixed cost: SAR 400,000
Required - You are required to calculate:
1. Calculate the contribution margin per unit and contribution margin ratio.
2. Calculate the break-even point in units and break-even point is sales value SAR.
3. Calculate the pretax profit of the company if it sells 1,400 units of the product.
4. Calculate the number of units required to sell to reach a target pretax profit of SAR 200,000?
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