Calculate the contribution margin ratio

Reference no: EM13301857

1. Calculate the contribution margin ratio and thereafter use ratio to determine sales value to achieve annual operating profit of R1200000.
2. Calculate margin of safety as %.
3. Suppose Colbert a considerng R20 per unit decrease in selling price of the product this would increase annual sales by 25%.
4. What price does colbert have to charge for each unit of product to breakeven,if all 28000 units produced are sold?
Fixed costs per year R480000,variable p u R76,sellng price p u R200,marketng cost R14000 pm,advertisng R40000 pm plus 6% of
sales,adminis:salaries R52000 pm,other office cost R44000 pm ,plus R12 p u sold. The no of units expected to produced and sold 28000

Reference no: EM13301857

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