Calculate the contribution margin ratio and thereafter use


1. Calculate the contribution margin ratio and thereafter use ratio to determine sales value to achieve annual operating profit of R1200000.
2. Calculate margin of safety  as %.
3. Suppose Colbert a considerng R20 per unit decrease in selling price of the product this would increase annual sales by 25%.
4. What price does colbert have to charge for each unit of product to breakeven,if all 28000 units produced are sold?
Fixed costs per year R480000,variable p u R76,sellng price p u R200,marketng cost R14000 pm,advertisng R40000 pm plus 6% of
sales,adminis:salaries R52000 pm,other office cost R44000 pm ,plus R12 p u sold. The no of units expected to produced and sold 28000

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Finance Basics: Calculate the contribution margin ratio and thereafter use
Reference No:- TGS0640549

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