XYZ Corporation has calculated that it has fixed costs that consist of its lease,depreciation of its assets, executive salaries, and property taxes. Those fixed costsadd up to RM 60,000. Their product is the widget. Their variable costs associatedwith producing the widget are raw material, factory labor, and sales commissions.Variable costs have been caleulated to be RM 0.80 per unit. The widget is priced atRM 2.00 each.(i)Determine the break-even point?Let's say you find a way to cut the cost of your overhead or fixed costs byreducing your own salary by RM10,000, calculate the new breakeven point.(ii)(iii)Market research has shown that customers will pay RM 3.00 for it, and yoursales team is confident that they can sell at least 50,000 units per month.Determine whether the product is financially viable and calculate the profitthe company makes according to the forecasting sales.

Break-even point = Fixed costs/(Selling price per unit - Variable cost per unit)

Answered: break-even point"

Business

Accounting

break-even point"

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...

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