Question: Help me question five QUESTION FIVE - CVP and Breakeven Analysis A. Break-even analysis can provide some useful insights concerning the important relationship between fixed
Help me question five

QUESTION FIVE - CVP and Breakeven Analysis A. Break-even analysis can provide some useful insights concerning the important relationship between fixed cost, variable cost and the volume of activity. As part of the CVP modal, break even analysis is a useful screening device for viable projects, however, careful analysis would be needed before major changes were made. Required a) Explain what Break-Even Analysis is b) Discuss any TWO weaknesses of Break-Even analysis B. MFI-19 Limited, is a newly established business located at the center of Dar Es Salaam City The business produces and sells four products: Red (R), Blue (B), Yellow (Y) and Green (G). which are sold in packs such that every pack must contain the four products such in every park there are I unit of R, 3 units of B, 4 units of Y and 5 units of G. In the month of December 2018, MFI-19 Led produced and sold as per details below. = Product B Y Total Selling price per unit in TZS 7,000 9.000 8.000 12 500 36,500 Direct Material cost per unit in 4,000 TZ'S 2,000 2,500 4,500 13,000 Direct Labour cost per unit in TZS 1.500 2,500 3,000 2.500 9.300 Total Fixed Costs in TZ'S 13,376,250 13,376,250 13,376,250 13,376,250 53,505,000 Required a) Determine the contribution margin per unit b) Determine the number of packs that MFI-19 Lid must sell to breakeven c) Determine the number of waits per product that MFT-19 Lid must sell to breakeven Page 3 of 13
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