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Production Planning and Manufacturing

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Questions and Answers

What is the formula to calculate the Break-Even Point in Units?

FC ÷ CMu

What is the selling price of Premium Recycled products?

৳422.05

What is the contribution margin per unit for Recycled products?

৳44.30

Why should the focus be on lowering variable costs?

Because the fixed cost has already been estimated at a minimum value. Signup and view all the answers

What is the break-even revenue for Recycled products?

৳89,786.27 Signup and view all the answers

How can the variable costs be lowered?

By purchasing direct materials in larger quantities. Signup and view all the answers

What is the fixed cost for both Premium and Recycled products?

৳15,000 Signup and view all the answers

What is the formula to calculate the Break-Even Sales?

FC ÷ CMR Signup and view all the answers

Why are the demand forecasts a concern?

They are lower than the break-even point. Signup and view all the answers

What is the objective of lowering the break-even point?

To improve the contribution margin. Signup and view all the answers