The following data refers to ABC Ltd for the year 2022. Fixed costs per annum $50 000
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Question:
The following data refers to ABC Ltd for the year 2022.
Fixed costs per annum $50 000
Unit selling price $20
Unit variable cost $10
Production and Sales $12 000 units
Required:
a) Construct a Break-even graph
b) Calculate break-even sales in quantity
c) Calculate break-even sales in value
d) Calculate margin of safety in units, value and percentage
e) Calculate estimated profit
f) What are the benefits of Break-even analysis
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood
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