Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profitof £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual totalfixed costs equal £147, 200. Considering this information, which of the following statements is true?O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet.O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits.O c. Contribution per unit equals £46.O d. All the answers are true.

The contribution Margin is calculated as difference between sales and variable cost. The break even…

Answered: Clockmaker Ltd. makes a product called…

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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