Rashid cafe has a coffee product that sells OMR 11.5 per unit. The cafe sold 500 units during June. The total variable cost is OMR 4,500 while total fixed costs are OMR 6,500. Using the contribution margin method, determine (a) the break-even point in units and (b) the break even point in sales if the selling price has increased to OMR 12.5 per unit.

Rashid cafe has a coffee product that sells OMR 11.5 per unit. The cafe sold 500 units during June. The total variable cost is OMR 4,500 while total fixed costs are OMR 6,500. Using the contribution margin method, determine (a) the break-even point in units and (b) the break even point in sales if the selling price has increased to OMR 12.5 per unit.

Name: Rashid cafe has a coffee product that sells OMR 11.5 per unit. The ca
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Description: Rashid cafe has a coffee product that sells OMR 11.5 per unit. The cafe sold 500 units duringJune. The total variable cost is OMR 4,500 while total fixed costs are OMR 6,500. Using thecontribution margin method, determine (a) the break-even point in

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3BE

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