Your dad recently decided to set up a coconut oil factory given the global demand .  In order to guarantee profitability and his ability to stay in business.He has asked you to help in the decision making .Given an estimated fixed cost of setting of GHC 2m and variable cost of GHC 55 per bottle of oil. Contribution margin is 12.7%. What should be the price (to the nearest whole ) if he wants breakeven at 250,000bottles.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Your dad recently decided to set up a coconut oil factory given the global demand .  In order to guarantee profitability and his ability to stay in business.He has asked you to help in the decision making .Given an estimated fixed cost of setting of GHC 2m and variable cost of GHC 55 per bottle of oil. Contribution margin is 12.7%. What should be the price (to the nearest whole ) if he wants breakeven at 250,000bottles.

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