Reference no: EM133072833
Question - Marginal Manufactures Pty Ltd make product X, and have provided the following details:
Sell Price $900
Distribution Variable Cost per unit $216
Manufacturing Variable Cost per unit $234
Manufacturing Fixed Costs $720,000
Non-Manufacturing Fixed Costs $216,000
2021 volume 3000 units
2022 volume 4100 units
REQUIRED -
1. Calculate the breakeven point in units for 2021 (round up to whole units).
2. Calculate the 2021 Profit.
In 2022, Marginal Manufacturers are planning to outsource the packaging of product X. This change will increase in the Distribution Variable Cost per unit by $90 and decrease the non-manufacturing fixed costs by $ 45,000.
REQUIRED -
4. Calculate the Profit for 2022 (round up to $, no decimal places).
5. Does the breakeven point increase following the proposed changes?
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