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Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi RM RM Sales price per unit 60.0 85.0 Variable cost per unit 35.0 54.0 Contribution margin per unit 25.0 31.0 Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: what is the amount of witrox estimated annual fixed costs?

Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi RM RM Sales price per unit 60.0 85.0 Variable cost per unit 35.0 54.0 Contribution margin per unit 25.0 31.0 Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: what is the amount of witrox estimated annual fixed costs?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi RM RM Sales price per unit 60.0 85.0 Variable cost per unit 35.0 54.0 Contribution margin per unit 25.0 31.0 Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: what is the amount of witrox estimated annual fixed costs?
Transcribed Image Text:Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi RM RM Sales price per unit 60.0 85.0 Variable cost per unit 35.0 54.0 Contribution margin per unit 25.0 31.0 Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: what is the amount of witrox estimated annual fixed costs?
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