Question: NEED ITS ACCURATE SOLUTION ONLY THEN I WILL UPVOTE IT. Section 3 (5 Marks) [CLO 4) From the given real-life scenario compute the Break-Even point

NEED ITS ACCURATE SOLUTION ONLY THEN I WILL UPVOTE IT. Section 3NEED ITS ACCURATE SOLUTION ONLY THEN I WILL UPVOTE IT.

Section 3 (5 Marks) [CLO 4) From the given real-life scenario compute the Break-Even point and draw a break-even chart and determine from the chart the break-even point, total cost line, profit area, loss area, sales line, fixed cost line, margin of safety and angle of incidence. Scenario John Cooper Corporation is a retail dealer in garments is currently selling 48,000 shirts annually. He supplies the following details for the year ended 31st March 2021. Particulars Amount $ Selling price per shirt 1,600 Fixed Cost: Staff salaries 4,800,000 General Office Cost 1,600,000 Advertising Cost 1,600,000 Variable cost per shirt: 1,200 You are required to answer the following: 1.Calculate Break Even Point in sales revenue (in amount) and number of shirts sold (in units). 2.Calculate Margin of Safety in sales revenue in amount) and number of shirts sold in units)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!