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Determine the contribution per unit of the product

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Question - Product X is produced and sold by Y Enterprise. The price per unit of the product has been estimated to be GH¢600 per unit with a budgeted fixed cost of GH¢8,250,000 for the period. The Enterprise has planned to sell 240,000 units of the product with an expected net profit of GH¢4,950.000.

Required -

a. Determine the contribution per unit of the product.

b. What output must be sold in order to break even.

c. What extra profit will arise from the sale of a further 3750 units.

Reference no: EM133177056

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