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Determine the break even sales in units and is pesos

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Problem - Cost volume profit and break even analysis - ramprong latatero corp. produces nd sells power banks, The variables costs to produce and sell one unit of power bank amount to 1,200.00 while the total fixed manufacturing selling and administrative costs per period ae 36,000. The power banks are sold at 3,000.00 per unit.

a. Determine the break even sales in units and is pesos

b. Assuming RKC desires a profit of 504,000 what is the required sales volume in units and in pesos?

c. Assuming RKC desires a profit of 864,000 what is the required sales volume in units and in pesos?

d. Assume for the next period RKC has budgeted sales of 50 units of 150,000 and considering that the company break even sales is 20 units or 60,000, what is the margin of safety in units and in pesos and what is the margin of safety ratio? formulate and informed interpretation.

Reference no: EM132979458

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