You have been provided with the following information regarding the VLCD Manufacturing company

You have been provided with the following information regarding the VLCD Manufacturing company:

 

Answer

Question No. 1

Required No. a

Profit = (50-24-6) x 40,000 – 360,000-80,000 = 360,000

Required No. B

Break-even point in sales =[ 440,000/(20/50) ]= $1100,000

Required No. c

Margin of safety percentage = [(50 x 40,000)-$1100,000]/(50 x 40,000) = 0.45

Required No. d

Break-even point in Units = [(360,000+80,000)+(120,000/1-0.4)]/(50-24-6) = 32,000