Reference no: EM132562224

Question 1: Meta Company has fixed costs of Br 100,000 and breakeven sales of Br 800,000. What is its operating income at Br 1,200,000 sales?

Question 2: During 1997, Harar Laboratory supplied hospitals with a comprehensive diagnostic kit for Br 120, At a volume of 80,000 kits, Harar had fixed costs of Br 1,000,000 and as profit before income taxes of Br 200,000 due to an adverse legal decision, Harar's 1998 liability insurance increased by Br 1,200,000 over 1997, Assuming the volume and other costs are unchanged, what should the 1998 price of the diagnostic kit be if Harar is to make the same Br 200,000 profit before income taxes?