Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
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Category > Management Posted 28 Feb 2018 My Price 6.00

Pharmaceutical Bhd manufactures

(a) What is the difference between the (ordinary) break-even point and the cash break-even point and which will be the greater?     (8 marks)

 

(b) Pharmaceutical Bhd manufactures medical products which are sold to pharmacies and clinics. The average selling price of its finished product is $ 180 per unit. The variable cost for these same units is $ 110. Pharmaceutical Bhd incurs fixed costs of $ 630,000 per year. Required to answer the followings:

i) What is the break-even point in units for the company?                (2 marks)

ii) What is the Ringgit Malaysia sales volume the firm must achieve to reach the break-even point?       (3 marks)

iii) What would be the firmAc€?cs profit or loss at the following units of production sold: 12,000 units? 15,000 units? & 20,000 units?         (4 marks)

iv) Find the degree of operating leverage for the production and sales levels given in part (iii) above.     (3 marks)

Answers

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Status NEW Posted 28 Feb 2018 07:02 PM My Price 6.00

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