Math Problems
Dragon Ltd produces one type of furniture set and the details per month are as follows:
Selling Price (per unit): – £3,400
Variable cost per unit (including labour,material and other costs – £1,600
Fixed cost per month – £774,000
Budgeted production/sales per month (in units) – 750 units
A. Calculate profit or loss expected if budget of selling 750 units is to be achieved.
B. Calculate how many units need to be sold per month in order to achieve break even point (BEP)
C. If shop aims to make a profit of £630, 000 per month, how many units should be sold per month.
D. Calculate margin of safety in units as well as percentage terms.