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Q3. A&T Company makes a product that sells for SAR 300 per unit. The other details related to this product are as follows: (4 Marks)
Variable costs = SAR 60 per unit
Fixed costs = SAR 144,000
You are required to calculate:
- Contribution margin per unit and contribution margin ratio.
- Break-even point in units and sales SAR.
- Pretax profit if the company sells 1200 units.
- Units needed to reach target pretax profit of SAR 120,000.
- Sales SAR needed to reach the target pretax profit of SAR 120,000.
- The margin of safety in units for budgeted next years sales at 1,800 units.
- The margin of safety in SAR for budgeted next years sales at 1,800 units.
(Chapter 3)
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