Relax Pte Ltd produced and sold 37,500 luxury scented candles during the year 2022at $80 per unit. Total fixed cost was $900,000 while variable cost was $50 per unit.Determine the breakeven point in units and in $.Compute the margin of safety in $ and in %.

Step 1:Computation of the contribution margin per unit and contribution margin ratio:Contribution…

Answered: Relax Pte Ltd produced and sold 37,500…

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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Relax Pte Ltd produced and sold 37,500 luxury scented candles during the year 2022 at $80 per unit. Total fixed cost was $900,000 while variable cost was $50 per unit. Determine the breakeven point in units and in $. Compute the margin of safety in $ and in %.