Solution-Calculate target unit sold and total sales

Calculate target unit sold and total sales

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Reference no: EM133016366

Question - Nurul Sdn Bhd(NSB) is a small bookstore which has been selling comic books in Puchong for two years. The owner, Puan Nurul plans to achieve a minimum profit of RM2,500 in the month of December 2020. According to her, this amount reasonable since during the school holidays in December many students would buy her books to read. Fixed costs which comprise mainly rental and salary are RM1,100 monthly. The cost of books are expected to increase by 10% from its previous cost of RM4.90 per book and currently the selling price of each book is RM7.50.

Required -

a) Calculate contribution margin per unit and contribution ratio.

b) Calculate the number of comic books that NSB needs to sell in order to achieve the break-even.

c) Determine the break even sales.

d) Calculate target unit sold and total sales if NSB wants to achieve a minimum profit or RM2,500 for the month of December 2020.

e) Calculate margin of safety in units and value if unit sold are 1,000 units.

Reference no: EM133016366

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Calculate target unit sold and total sales

Reference no: EM133016366

Reference no: EM133016366

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