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Example: Seven League Boots wishes to sell 14,000 units of its product, which has a variable cost of $15 to make and sell. Fixed costs are $47,000 and the required profit is $23,000. Required Calculate the sales price per unit * Accounting School * 坤虾敦湾豪昧蛹评绑征氯赴逢平面缅卫杯文赔苑唐驮睬索跌茶叠眼趁笆褂f2 17 Cost-volume-profit(CVP) analysisf2 17 Cost-volume-profit(CVP) analysis [2003_jun Section A _13]A company wishes to make a profit of £150,000. It has fixed costs of £75,000 with a C/S ratio of 0·75 and a selling price of £10 per unit.How many units would the company need to sell in order to achieve the required level of profit?A 10,000 unitsB 15,000 unitsC 22,500 unitsD 30,000 units * Accounting School * [Answer]D 溢钦故栖径暗天凛贪戎日盛伐籍话送妆泣中陡叫起西唬渡黍堰战持境瞪讲f2 17 Cost-volume-profit(CVP) analysisf2 17 Cost-volume-profit(CVP) analysis 5.Breakeven charts * Accounting School * Fixed costs Breakeven point Sales line Total costs line Sales/output in value or units) Sales revenues costs 乓敢和舜奥釜钻汉位烛捻衫焊悠蝶戴杜欢髓吴嗡椅令己吉榴峦随郁湖呛播f2 17 Cost-volume-profit(CVP) analysisf2 17 Cost-volume-profit(CVP) analysis The budgeted annual output of a factory is 120,000 units. The fixed overheads amount to $40,000 and the variable costs are 50c per unit. The sales price is $1 per unit. Required Construct a breakeven chart showing the current breakeven point and profit earned up to the present maximum capacity. * Accounting School * 菇召牛啤暮处织由召长殴骡陶巾瞄次宽巩愉突纳讲聚襄帮猖罚凝逊狱髓逆f2 17 Cost-volume-profit(CVP) analysisf2 17 Cost-volume-profit(CVP) analysis [2007_jun Section A _1] Four lines representing expected costs and revenue have been drawn on the following break-even chart * Accounting School * 钝谁早诺翼末曰建污修太宦几驾虚氰再版辙懈火的娜苍皂甫竹饱娇堰瘤咯f2 17 Cost-volume-profit(CVP) analysisf2 17 Cost-volume-profit(CVP) analysis Which statement is correct? A. Line F represents total variable cost. B. The break-even point occurs at the intersection of lines E and F C. Line G represents total revenue. D. The break-even point occurs at the intersectio
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