Business, 20.10.2021 18:20 anggar20

Fidel & Ana Limited makes electric kettles that they currently sell at £13 each. The management believes that the company's equipment could currently produce up to 70,000 units of electric kettles per year. However, the budget for the coming year is 53,000 units of electric kettles and costs are estimated as follows: Variable Costs (per unit)

Materials £5.25

Labour £2.95

Variable overheads £ 1.85

Fixed costs:

Production £59,000

Selling etc. £47,600

What is the break-even point and margin of safety in terms of both units and revenue if each electric kettle is sold for £13 (4 marks)

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Fidel & Ana Limited makes electric kettles that they currently sell at £13 each. The management...

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