Solution-Calculate the breakeven point in units and in

Calculate the breakeven point in units and in revenue

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Reference no: EM133056199

Question - Pike street Fudge makes and sells fudge in a variety of flavours in a shop located in the local public market. Data for a recent week are as follows:

Revenue (2000kg @$4.8 per kg)		$9600
Cost of ingerdients	$3200
Rent	800
Wages	4800	8800
Pre-tax profit		800
Taxes (20%)		160
After-tax profit		$640

All employees work stardard shifts, no matter how much fudge is produced or sold.

Required -

a. Calculate the breakeven point in units and in revenue

b. Calculate the number of units and the amount of revenues that would be needed for after-tax income of $3000

c. Calculate the margin of safety in units and the margin of safety percentage.

d. Calculate the degree of operating leverage.

Reference no: EM133056199

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Calculate the breakeven point in units and in revenue

Reference no: EM133056199

Reference no: EM133056199

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