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Calculate the break-even point in units and break-even point

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Reference no: EM133120580

Question - The following information is related to CTH Corporation which manufactures a single product:

Selling price per unit: SAR 800

Variable cost per unit: SAR 240

Total fixed cost: SAR 400,000

Required - You are required to calculate:

1. Calculate the contribution margin per unit and contribution margin ratio.

2. Calculate the break-even point in units and break-even point is sales value SAR.

3. Calculate the pretax profit of the company if it sells 1,400 units of the product.

4. Calculate the number of units required to sell to reach a target pretax profit of SAR 200,000?

Reference no: EM133120580

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