Question 4Ali Limited produces and sells two products.Product A sells for £12 per unit and has a total variable cost of £7.90, while Product Bsells for £17 per unit and has a total variable cost of £11.20.For every 4 units of Product A sold, three of product B are sold. Ali Limited fixed costsare £131,850. Budgeted sales revenue is £428,500.Required:a)b)b)Calculate the Break-Even points in Units.Calculate the Margin of Safety in Units.Evaluate the relevance of Break-Even Analysis indecision making process.

Lets understand the basics.Break even point is a point at which contribution equal to fixed costs of…

Answered: Ali Limited produces and sells two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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TLF Ltd wishes to sell 28,000 units of its product, which has a variable cost of £30 to make and sell. Fixed costs are £94,000 and required profit is £26,000. Required Calculate the sales price per unit

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