The following budget was provided by AD Enterprises
$
Sales
200,000
Variable cost
150,000
Contribution
50,000
Fixed cost
40,000
Net profit
10,000
Number of units to be sold
100,000
You are required to calculate
a The Breakeven Sales
b. The Breakeven units
c. The Margin of Safety
d. The value of sales are required to make a profit of $15,000
e. State two (2) advantages and limitations of Break-even (Cost-Volume-Profit) Analysis
(4 Marks)
(4 Marks)
(4 Marks)
(4 Marks)
(4 Marks)
(Total 20 Marks)