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What the firm margin of safety ratio

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Question - The Middle East Company produces and sells three products, X, Y and Z. Prices and cost data are as follows:

Selling price per unit 20

Variable cost per unit 4

The company's fixed costs amounted to K.D. 60,000 for the year ended December 31, 2020.

1) Suppose the Firm's target sales for the coming year is 6,000 units, then the firm's net income would be?

2) Suppose the Firm's target net income for the coming year is 20,000 K.D., then the firm's margin of safety ratio and in quantity would be respectively as follows?

3) The company's contribution margin ratio and variable cost ratio respectively are?

4) Suppose the selling price per unit increased by 10% , variable cost increased by K.D. 1 , and fixed costs also increased by K.D. 8,000 the break-even point in K.D. would be?

5) Suppose the selling price per unit increased by 10% , variable cost increased by K.D. 1 , and fixed costs also increased by K.D. 8,000 the break-even point in K.D. would be?

Reference no: EM132894606

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