What is turabi break-even point in units

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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?

Reference no: EM132549327

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