Sunkwa Limited produces and sells one product. The monthly fixed expenses are €120,000 The cost information for a product is as follows: Direct material $6 Direct wages $4 Contribution / Sales ratio 60%. Required:
a. Calculate the selling price per unit.
b. Determine the total sales in cedis if 9,500 units are produced.
c. Calculate the break-even point in cedis.
d. Compute the total contribution margin at the break-even point.
e. Compute the units that would have to be sold to earn a net profit of €18,000?
f. Compute the company's margin of safety in cedis if it produces 10,500 units.
