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What will be the contribution and bep

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Reference no: EM132707368

You are provided with the following Information for the year ending 31st Dec 2020:

a) Units produced 12,000

b) Units Sold 8600

c) Selling Price per unit sh. 107

d) Variable production costs Sh. 220,000

e) Fixed Production costs sh. 87000

f) Fixed Administration costs Sh. 34000

g) Variable selling & distribution Costs sh. 130,000

h) This is the first year for the company to be involved in such production process.

Required:

Problem a) If the Company uses Marginal costing, what will be its net income /loss.

Problem b) What will be the Contribution, BEP & margin of safety for this Business?

Reference no: EM132707368

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