Hedges Ltd has fixed costs of £8,000. The variable costs are £4 per unit. The revenue (selling price) is £6 per unit. 

You are required 

(i) to draft a schedule as follows filling in the columns (a) to (f) for each stage of 1,000 units up to 10,000 units.

(ii) You are also required to draw a break-even chart from the data in this schedule. Draw it carefully to scale on a piece of graph paper. Retain your answer, you will need it for some questions which follow later.

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No. of units 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 (a) Fixed cost £ (b) Variable cost £ (c) Total cost £ (d) Revenue £f (e) Profit £ (f) Loss £