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Determine the companys monthly break-even point in units

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Reference no: EM132474263

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

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

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

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

  • 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: EM132474263

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