Solution-Calculate the breakeven units and breakeven value

Calculate the breakeven units and breakeven value

Reference no: EM133106101

Question - Widget Ltd produces and sells a single product. The following information is obtained from the budget for the month ending 30 October:

		Rand
Sales	(16,000 Units)	1,120,000
Direct materials		400,000
Direct labour		200,000
Variable overheads		150,000
Manufacturing overhead costs:
Variable		150,000
Fixed		50,000
Selling & administrative costs:
Variable		120,000
Fixed		24,000

Required -

a) Calculate the contribution per unit.

b) Calculate the contribution ratio.

c) Calculate the breakeven units and breakeven value.

d) Calculate the margin of safety ratio. Additionally, interpret your answer.

Reference no: EM133106101

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Calculate the breakeven units and breakeven value

Reference no: EM133106101

Reference no: EM133106101

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