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Determine the company monthly break-even point in units

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Reference no: EM132438243

Problem: MM Company manufactures and sells wire rakes. The rakes sell for Br. 16 each. Information about the company's costs is as follows:

Variable manufacturing cost per unit Br. 8

Variable selling and administrative cost per unit Br. 4

Fixed manufacturing overhead per month Br. 150,000

Fixed selling and administrative cost per month Br. 350,000

Required:

Question 1: Determine the company's monthly break-even point in units.

Question 2: Determine the sales volume (in dollars) required for a monthly operating income of Br. 100,000.

Question 3: Compute the company's margin of safety if its current monthly sales level is Br. 3,800,000.

Question 4: Estimate the amount by which monthly operating income will increase if the company anticipates a Br. 200,000 increase in monthly sales volume.

Reference no: EM132438243

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