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What is the break-even sales amount

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Reference no: EM132997136

Question - A company can manufacture load-shedding lamps for R480 in variable raw material cost and R310 in variable labour cost. The lamps sell for R1,200 each. Last year they produced 1200 lamps, and fixed costs were R460,000.

1. What is the break-even sales amount & break-even number of units?

2. What is the contribution margin?

3. What is the margin of safety what does it mean?

4. If the company is considering a one-time order of 500 lamps, what is the absolute minimum acceptable price per picture frames? Explain your answer.

Reference no: EM132997136

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