Explore BrainMass

Sonita Manu: breakeven, target profit, margin of safety

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Sonita Manufacturing
per unit
Sales RM25.00
DM RM10.50
DL RM5.00
VOH RM3.00
variable selling RM1.30
total var cost RM19.80

Fixed costs (annual)
MOH RM192,000.00
S&A RM276,000.00

sales volume 120,000

Calculate breakeven in units and sales, margin of safety in units, units to reach target of 260,000 and units to breakeven if labor costs rise by 8%.

© BrainMass Inc. brainmass.com March 22, 2019, 2:31 am ad1c9bdddf

Solution Summary

This solution contains a tutorial that shows the formulas, the computations and the approach for these questions. Click in cells to see computation in Excel.