c) Somordor Ltd is a producer of Fertilizers. In a year the manufacturer produces 1,000 bags of the Fertilizers but it i

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C Somordor Ltd Is A Producer Of Fertilizers In A Year The Manufacturer Produces 1 000 Bags Of The Fertilizers But It I 1 (30.04 KiB) Viewed 51 times

c) Somordor Ltd is a producer of Fertilizers. In a year the manufacturer produces 1,000 bags of the Fertilizers but it is able to sell 2/3 of the total production at GH$450 per product. The fixed cost of the entity per month is made of the following expenses: Wages & Salaries GH4 50 Advertisement GH¢ 20 Processing Cost GHé 80 The cost incurred in producing ten (10) units of Fertilizers is also as follows: Labour GH€ 23 Production Overhead GH¢ 30 Rubber GHé 43 Required: Calculate in a year i. The break-even units ii. The margin of safety in cash as they sell 2/3 of the products sold The number of tyres to be sold to make a loss of GH¢ 3,450 iv. Interpret your answer in ii above (3 marks) (4 marks) (3 marks) (4 marks)