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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Sparkle produces one product, the Esprit.
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During the year ended 31 December 2013, the company produced 15000
units of Esprit and incurred the following total costs:
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Direct materials $90 000
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Direct labour $67 500
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Variable production overhead $45 000
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Fixed production overhead $60 000
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Other fixed overheads $25 000
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Each Esprit is sold for $26.00
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Calculate the contribution, break even point and margin of safety.
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