(a) MAX rental agency rents automobiles. What assumptions would be made about the agency's sales mix...

 

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(a) MAX rental agency rents automobiles. What assumptions would be made about the agency's sales mix for the purpose of a cost volume-profit analysis? (State any Three (3) assumptions. (15 marks) (b) You are presented with the following information for MAX rental agency for the year to 31 January 2021 $000 Fixed costs 80 Variable costs 150 Sales (50,000 units) 250 (i) Calculate the break-even point in units and in value terms. (30 marks) (ii) Explain to MAX rental agency the meaning of the term "margin of safety? (15 marks) (a) MAX rental agency rents automobiles. What assumptions would be made about the agency's sales mix for the purpose of a cost volume-profit analysis? (State any Three (3) assumptions. (15 marks) (b) You are presented with the following information for MAX rental agency for the year to 31 January 2021 $000 Fixed costs 80 Variable costs 150 Sales (50,000 units) 250 (i) Calculate the break-even point in units and in value terms. (30 marks) (ii) Explain to MAX rental agency the meaning of the term "margin of safety? (15 marks)

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