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How many mobile phones would turabi ltd need to sell

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Reference no: EM132560655

Turabi Ltd, a mobile phone manufacturer, has the budget set out below for its one product for the coming year:

                                                 PKR'000                           PKR'000

Sales revenue                             (20,000 units)                    5,000

Manufacturing costs -                      variable 1,400              fixed 1,600

Other production costs -                        variable 400             fixed 1,200

4,600

Budgeted profit 400

REQUIRED:

Question a) What is the selling price of each unit?

Question b) What is the variable cost of each unit?

Question c) What is Turabi's contribution per unit?

Question d) What is Turabi's break-even point in units?

Question e) How many mobile phones would Turabi Ltd need to sell to achieve a target profit of PKR 1,000,000?

Reference no: EM132560655

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