[Question 1] Braham Ltd manufactures a computer stand. It has fixed costs of $500,000 and each stand sells for $120, with a variable cost of $70 per unit. The factory has a maximum capacity of 20,000 units and it anticipates selling 15,000 units each period. Construct the break-even chart for the business, showing the break-even point, and the margin of safety.
[Question 1] Braham Ltd manufactures a computer stand. It has fixed costs of $500,000 and each stand sells for $120, with a variable cost of $70 per unit. The factory has a maximum capacity of 20,000 units and it anticipates selling 15,000 units each period. Construct the break-even chart for the business, showing the break-even point, and the margin of safety.
Chapter1: Financial Statements And Business Decisions
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![[Question 1]
Braham Ltd manufactures a computer stand. It has fixed costs of $500,000 and each stand sells
for $120, with a variable cost of $70 per unit. The factory has a maximum capacity of 20,000
units and it anticipates selling 15,000 units each period. Construct the break-even chart for the
business, showing the break-even point, and the margin of safety.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1cb2edfb-9d78-4fce-b39c-d9a0d22d3df3%2Fbc106426-00f6-478a-b439-89b50f1019ae%2Foys4nuj_processed.png&w=3840&q=75)
Transcribed Image Text:[Question 1]
Braham Ltd manufactures a computer stand. It has fixed costs of $500,000 and each stand sells
for $120, with a variable cost of $70 per unit. The factory has a maximum capacity of 20,000
units and it anticipates selling 15,000 units each period. Construct the break-even chart for the
business, showing the break-even point, and the margin of safety.
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