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@tommy_gun
Could anyone please help on the below ?
Western Ltd plans to assemble and sell 30,000 giant teddy bears in 2011 at £40 each. Western’s costs are as follows:
Variable costs:
Materials £14 per bear
Labour £8 per bear
Overheads £8 per bear
Estimated fixed costs for the year £ 120,000
You are required to calculate:
(i) Western’s Ltd planned contribution for 2011
(ii) Western’s Ltd planned profit for 2011
(iii) The break-even sales value for 2011
(iv) The break-even number of bears to be sold
(v) The margin of safety for 2011 in sales value
(vi) The margin of safety for 2011 in number of bears sold