Solution-Find break-even point in units and in shillings

Find break-even point in units and in shillings

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Reference no: EM132611227

The following data relates to Optimal Company, a manufacturer of a toothpaste product.

Financial extracts for the month of May 2020

Fixed costs Sh.200,000

Variable cost Sh.12 per unit

Selling price Sh.28 per unit

The current production is at 75% capacity and the number of units produced and sold is 37,500 units.

Required

Question a) The break-even point in units and in shillings

Question b) P/V ratio

Question c) margin of safety

Question d) State four assumptions that you have taken into account in answering the above

Reference no: EM132611227

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Find break-even point in units and in shillings

Reference no: EM132611227

Reference no: EM132611227

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