Problem
Given is the following cost situation.
|
|
Total
|
Per unit
|
|
Sales in units
|
2,500
|
50 €
|
|
Sales in monetary units
|
125,000 €
|
50 €
|
|
Variable costs
|
87,500 €
|
35 €
|
|
Fixed costs
|
30,000 €
|
|
|
Target profit
|
10,000 €
|
|
• Determine the contribution margin ratio, break-even point in unit sales, safety margin, target profit in unit sales, and degree of operating leverage.