At a Monthly Volume of £25,000, a Company Incurs Variable

question 28

Essay

At a monthly volume of £25,000, a company incurs variable cost of £19,000 and fixed costs of £6,000.
Required:
Determine each of the following values:
a.
Variable cost ratio
b.
Contribution margin ratio
c.
Monthly break-even pound sales volume
d.
Monthly margin of safety in monetary terms

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Definitions:

Economics

A social science concerned with the production, distribution, and consumption of goods and services, studying how individuals, businesses, governments, and nations make choices on allocating resources to satisfy their desires and needs.

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