Question: X Illustrative example XYZ Ltd has been using the cost-volume profit analysis system since it has started operations. The company has found this tool very

X Illustrative example XYZ Ltd has been using the cost-volume profit

X Illustrative example XYZ Ltd has been using the cost-volume profit analysis system since it has started operations. The company has found this tool very useful in planning its cost, quantity and profit. The company presented you with the following data:- Sales (R50 * 6 000) R300 000 Less: Variable cost (R30 6 000) R180 000 Contribution margin R120 000 Less: Fixed costs R100 000 Net Profit R 20 000 REQUIRED Calculate the following: 1.1 Break-even quantity 1.2 Break-even value 1.3 Margin of safety ratio 1.4 Sales units if a profit of R200 000 is desired

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