At a price of £32, the estimated monthly sales of a product are 12,000 units. Variable costs include manufacturing costs of £18 and distribution costs of £6. Fixed costs are £40,000 per month.
Required:
Determine each of the following values:
a.
Unit contribution margin
b.
Monthly break-even unit sales volume
c.
Before-tax monthly profit
d.
Monthly margin of safety in units

Question

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The Answer of At a price of £32, the estimated monthly sales of a product are 12,000 units. Variable costs include manufacturing costs of £18 and distribution costs of £6. Fixed costs are £40,000 per month.
Required:
Determine each of the following values:
a.
Unit contribution margin
b.
Monthly break-even unit sales volume
c.
Before-tax monthly profit
d.
Monthly margin of safety in units

At a Price of £32, the Estimated Monthly Sales of a Product