Reference no: EM132566781

The company produced and sold 10,000 units small wooden tools. Its operating results for last year were as follows:

Sales                               400,000

Variable Expenses                 160,000

Contribution Margin                 240.000

Fixed Expenses                         180,000

Net Profit                                 60,000

Required:

Answer each question independendy based on the original data:

Question 1. Determine the break-even point in dollar sales.

Question 2. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.

Question 3. How many units must be sold each to attain a target profit of RM80,000.

Question 4. If this year's sales commissions increase RM1 per unit and fixed expenses will decrease RM 50,0000.

a) Compute the break-even point in dollar sales.

b) Computer the new net income {P repare the contribution margin income statement)

c) How many units must be sold each D aaain a target profit of RM78,000?