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12:06 sun (©) 902 © Dr LE AAD 45% PAR Were Question: @4. You are given the following data relating to Moynamot... (04. You ae given the flowing dat relating to Moynamoti Ls ‘Nora Sales Level (At 100%) 20000 unt: Seling Price T5000 per sit Vasa Cost Th. 30.00 per unt Fed Cost Th.2 00,000 Tax Rate 40% ‘Aditional Fie Cost of TRAO.000 would be requiced if production exceeds 15% of 1) Calculate BEPin units and in amount at 100% and 120% production levee ') Prepare Income Statements by analyzing Sales Sensitivity at/-10%, \ow transcribed Expert Answer General guidance The answer provided below has been developed in a clear Step-by-step Step 1of2.A Sannin) Hoe souroo sooo Contribution equals fixed cost at BEP. Since 120% exceeds 15% of normal level, fixed cost increases by 40000 and variable cost decreases by 5 per unit Step 20f 2 12:06 sun (®) 909 © Or LTE AAG 45% rage Were Step-by-step air Step Lof2A Contribution equals fixed cost at BEP. Since 120% exceeds 15% of normal level, fixed cost increases by 40000 and variable cost decreases by 5 per unit Step 2 of 2. Sales level of 120% gives the highest contribution and Net Profit While 80% sales level gives the minimum. Also, Net Profit to Sales Ratio and Contribution to Sales Ratio are highest at 120% sales level and lowest at 80% sales level. Answer

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