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  3. 2. exercise you know the following information on

2. exercise You know the following information on the production and sale of an entity...

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Accounting

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2. exercise You know the following information on the production and sale of an entity for the base period: Produced quantity 30 000 unit Net sales revenue 300 000 M Variable cost 100 000 ME Fix cost 150 000 ME Required: Use the contribution format for the solution! 1. The company plans to increase the selling price with 10 % and make a marketing campaign for 10 000 M. Calculate the profit! Say your opinion about this plan! 2. How much is the Contribution margin and profit margin in the base! How the company could increase the profit margin? 3. Calculate the break-even for the base! 4. Calculate the operating leverage! 5. Calculate the margin of safety

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