Reference no: EM132549327
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?