Question

Question # 3 (4 points) A wholesaler will start his new business of importing sugar and selling it in Saudi market starting from April 1, 2022. The following information are given to you: Fixed Costs: a. Warehouses Annual Rent = SR200,000 b. Annual Insurance Fees = SR10,000 c. Salaries of Administrative Staff = SR150,00 Variable Costs (per unit sold) a. Labor Cost = SR5 b. Transportation Cost = SR2 c. Raw material = SR10 Price Per Unit: P = SR60 Target Profit Level in March 31, 2023 = SR480,000 Average Monthly Sales = 3,600 units Based on the above information, answer the following questions: 1. Find out the number of unite need to be sold to breakeven? 2. How many units need to be sold to achieve the target profit level? 3. How many months will it takes to achieve the target profit level? 4. If the wholesaler achieves the target profit level, find out the margin of safety?

          Question # 3
(4 points)
A wholesaler will start his new business of importing sugar and selling it in Saudi market
starting from April 1, 2022. The following information are given to you:
Fixed Costs:
a. Warehouses Annual Rent = SR200,000
b. Annual Insurance Fees = SR10,000
c. Salaries of Administrative Staff = SR150,00
Variable Costs (per unit sold)
a. Labor Cost = SR5
b. Transportation Cost = SR2
c. Raw material = SR10
Price Per Unit: P = SR60
Target Profit Level in March 31, 2023 = SR480,000
Average Monthly Sales = 3,600 units
Based on the above information, answer the following questions:
1. Find out the number of unite need to be sold to breakeven?
2. How many units need to be sold to achieve the target profit level?
3. How many months will it takes to achieve the target profit level?
4. If the wholesaler achieves the target profit level, find out the margin of safety?

Question # 3
(4 points)
A wholesaler will start his new business of importing sugar and selling it in Saudi market
starting from April 1, 2022. The following information are given to you:
Fixed Costs:
a. Warehouses Annual Rent = SR200,000
b. Annual Insurance Fees = SR10,000
c. Salaries of Administrative Staff = SR150,00
Variable Costs (per unit sold)
a. Labor Cost = SR5
b. Transportation Cost = SR2
c. Raw material = SR10
Price Per Unit: P = SR60
Target Profit Level in March 31, 2023 = SR480,000
Average Monthly Sales = 3,600 units
Based on the above information, answer the following questions:
1. Find out the number of unite need to be sold to breakeven?
2. How many units need to be sold to achieve the target profit level?
3. How many months will it takes to achieve the target profit level?
4. If the wholesaler achieves the target profit level, find out the margin of safety?

Added by Thomas B.

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