18.1Briefly explain how the break-even point is calculated:

(a) In sales units. (b) In sales dollars. (c) Using a graph.

18.8A not-for-profit art gallery covers its operating costs by charging an admission fee. A local arts enthusiast has offered to make an annual donation of $10 000 to the gallery. Explain how this donation willaffect the gallery'sbreak-even point.

18.22BasicCVPanalysis:retailer

University Pizza delivers pizzas to the residential colleges and flats near a major university. The company's annualfixed costs are $54 000. The sales price of a pizza is $10, and it costs the company $6 to make and deliver each pizza. (In the following requirements, ignore income taxes.)

Required:

1. Using the contribution margin approach, calculate the company's break-even point in units (pizzas).

2. What is the contribution margin ratio?

3. Calculate the break-even point in sales dollars. Use the contribution margin ratio in your calculation.

4. How many pizzas must the company sell to earn a target net profit of $60 000? Use the CVP

equation.

9.1Explain the differences between strategic plans and budgets.

9.2How can a budget assist managers to allocate financial resources?

9.7Explain why many companies believe that cash flow budgeting is important.

9.8Explain the differences between strategic plans and budgets.

9.9 It is clear that if an organisation has too little cash, it is a major problem. However, can having too much cash ever be a problem? Think about it carefully!

9.10

Cash budgeting The following information is available from the financial records of Albury Ltd: Sales Purchases April $180 000 $105 000 May 165 000 120 000 June 150 000 90 000 July 195 000 135 000