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Calculate the total variable costs per unit

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Reference no: EM133036308

Question - A company plans to produce sell 120,000 units of its single product in the forthcoming period at a selling price of ksh15 per unit. Fixed overheads and net profit for the period are expected to be ksh440,000 and ksh520,000 respectively

Required -

1. Calculate the total variable costs per unit

breakeven point in units

margin of safety as a %

2. Revenue required to achieve a target profit of ksh800,000.

3. Discuss the shortcomings of breakeven analysis to a company.

Reference no: EM133036308

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