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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.
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