Question

5) CV is nie on the w alls with lyrics Crime tal frodas d e wa Total de The w o n a decreases i les volume roman the new When a compares the point to teda Use the following l i st Real Co wie co to pod wil bewolde the key and 9.9, 10 n gresowfoed R$15 we

Answer 1

1 0 fixed cost will remain constant irrespective of the production levels. * variable cost will vary with level of production If volume decreases 1) Fixed cost will remain constant 2) variable cost will decrease 3) Total cost will also decrease - Total cost = Fixed cost t variable cost. Answer o ☺ contributin moorgin: Sales – variable cost If variable cost lunit increases contribution margin will decrease Ang wer ! C) Arswer At Break even point fixed cost will be equal to contribution margin. > AT BEP there will be no loss and no profit

Fixed costs = $150000 » Selling price - $15 Variable cost $10- contribution margin = $5 unit Percentage =" $5 x100 = 33-33-6. $15. Fixed costs 150000 33.33-4 -X100 margin contributim percentage 'It usoooo ep Jo eain a profit of $20000. Fixed cost +820000 170000 $5 lunit $5 - 34000 rackets 375000 250000 - Sales = 25000 X 15 less variable cost contri bulion less - Fixed cost . 125000 64760000) Profit I clos) (Pusooo)