Question: Z-Boxes sell for 299 and their variable production cost is 99. The research and development, and fixed production overheads for the year are f1.2 million.
Z-Boxes sell for £299 and their variable production cost is €99. The research and development, and fixed production overheads for the year are f1.2 million.
- Calculate the break-even level of sales volume and revenue?
- Calculate the break-even revenue using C/S ratio?
- The budget revenue is €2.99 million; calculate the margin of safety in units and as a percentage?
- Produce a break-even chart and profit-volume chart using the information above?
- How many Z-Boxes must be sold to achieve £500,000 profit
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Solution Breakeven level of sales volume and revenue The breakeven level of sales volume is calculated by dividing the fixed costs by the contribution ... View full answer
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