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A factory to be established of Fixed cost of (A), expecting that the price per unit is (B) and variable cost is (C) OR
A factory to be established of Fixed cost of (A), expecting that the price per unit is (B) and variable cost is (C) OR. Use this information to answer the following: [26marks]
- Calculate breakeven in quantity 8marks
- Calculate beak even in money 4marks
- Draw breakeven chart. 4marks
- Indicate whether 150000 and 200000 in loss or profit area. 4 marks
- What would happen to the breakeven point if the fixed cost decrease of 7%.
|
A Fixed cost |
B Price/unit |
C Variable cost/unit |
|
51000 |
1.8 |
1.44 |
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