Q2. A&D Ltd. is in the manufacturing of wooden products and makes several wooden items. The following values are related to a particular wooden item: Particulars Selling price per unit SAR 1,100 Variable cost per unit SAR 400 Total fixed costs
Q2. A&D Ltd. is in the manufacturing of wooden products and makes several wooden items. The following values are related to a particular wooden item: Particulars Selling price per unit SAR 1,100 Variable cost per unit SAR 400 Total fixed costs
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 40P
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Q2. A&D Ltd. is in the manufacturing of wooden products and makes several wooden items. The following values are related to a particular wooden item:
Particulars |
|
Selling price per unit |
SAR 1,100 |
Variable cost per unit |
SAR 400 |
Total fixed costs |
SAR 500,000 |
Estimated next year’s budgeted sales |
1,200 units |
You are required to calculate:
- BEP in units and BEP in sales SAR
- Degree of operating leverage
- Margin of safety in units
- Margin of safety in SAR
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