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  • BAE

Calculate the sales revenue level at which the business broke even in 2011

a- Calculate the sales revenue level at which the business broke even in 2011. (10 marks)


b- Calculate the sales revenue that would have been required to generate an operating profit of £240,000 in 2011. (10 marks)


c- Illustrate your answer to (b) on: 1- a chart displaying the contribution level and the profit level; ( 5 marks) 2- a profit-volume chart. (5 marks)


d- If a new product does not require any new fixed costs because the company utilizes the existing capacity of facilities and personnel, what would be the breakeven point? (10 marks)

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