Telecomm bhd manufactures telecommunication devices which, Ask an Expert

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Telecomm Bhd manufactures telecommunication devices which are sold to distributors and retail outlets. The average selling price of its finished product is RM180 per unit. The variable cost for these same units is RM110. Telecomm Bhd incurs fixed costs of RM630,000 per year. Required to answer the followings: a) What is the break-even point in units for the company? b) What is the Ringgit Malaysia sales volume the firm must achieve to reach the break-even point? c)What would be the firm’s profit or loss at the following units of production sold: 12,000 units? 15,000 units? & 20,000 units? d)Find the degree of operating leverage for the production and sales levels given in part (iii) above.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92537875

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