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Question 5

Mr. Wong is a small manufacturer of bicycles in Hong Kong. His business incurred the following costs for the year ended 31 December 2003.

Materials (100% variable) 300,000

Labor (25% variable) 200,000

Selling & distribution cost (20% variable) 50,000

Other costs (fixed) 170,000 720,000

Normally, the business sells 3,000 units at $300 each:

Required:

(a)Calculate the breakeven point in units and dollar sales.

(b)Calculate the contribution to sales ratio.

(c)Calculate the margin of safety in percentage.

提问人:网友lyl1972 发布时间:2022-01-07
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