Auto Robot Ltd which manufactures two products P & Q has provided the following information. P (shs) Q(sh Selling price per unit 10 12
Variable cost per unit 2 8
Fixed cost 50,000 34,000
Units 80,000 60,000
Required:
i) Calculate the B. E. P. of each product in units and in shillings.
ii) Calculate the margin of safety if budgeted sales are 10,000 units each
iii) Compute the profit of each product if sales in units are 20% above the B. E. P.