ACCA PM Syllabus C. Decision-making Techniques - Break-Even Point and Margin of Safety - Past Papers ^{2 / 6}

The following information is available for a manufacturing company which produces multiple products:
(i) The product mix ratio
(ii) Contribution to sales ratio for each product
(iii) General fixed costs
(iv) Method of apportioning general fixed costs

Which of the above are required in order to calculate the break-even sales revenue for the company?
A. All of the above
B. (i), (ii) and (iii) only
C. (i), (iii) and (iv) only
D. (ii) and (iii) only

A company makes a single product which it sells for $2 per unit.

Fixed costs are $13,000 per month.

The contribution/sales ratio is 40%.

Sales revenue is $62,500.

What is the margin of safety (in units)?

A. 15,000
B. 16,250
C. 30,000
D. 31,250