Determine the sales at the break-even point for this product

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Reference no: EM133585848

Question (a) Determine the sales at the break-even point for this product.

Question (b) Calculate the contribution sales ratio.

Question (c) Determine the sales needed to achieve a target profit of £200,000.

Question (d) If the company reduced its selling price to £7 per unit in the face of increased competition, determine the effect on the break-even point and the profit.

Question (e) In the context of break-even analysis, discuss and graphically illustrate the role of the concept of "Margin of Safety" in managerial decision-making.

Reference no: EM133585848

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