Exam Q's Unit 2 - Break Even

The margin between projected units and break even point units definition of ....?(1 mark)

selling price - variable cost is the formula for?(1 mark)

What is the break-even point in units for a company whose total fixed costs are £275,450; selling price per unit is £16; and variable cost per unit is £14.75? (2 marks)

My total costs are £50,000 when selling 100 items. My fixed costs are £20,000. What must be the variable cost of one item? (1 mark)

We are going to manufacture Whats-Its. The Whats-It machine costs £4000.It also costs £5 for materials and labour for each Whats-It. We are planning to sell our Whats-Its for £12 each. How many Whats-Its must we sell in order to breakeven? (1 mark)

Fixed costs: = £30,000

Variable cost: = £200 per photo shoot

Forecast output (Sales): = 140 photo shoots

Selling price: = £1000 per photo shoot

What is the Total Contribution? (2 marks)

Simon has worked out the following figures for new Bobble Hats he is going to sell. He estimates that he can produce 20 000 hats a month with a selling price of £3.50. He expects the machinery costs to be £60 000 per annum, staff salaries are £72 000 per annum and raw materials cost £30 000 per month

What is the margin of safety? (3 marks)

Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).

Calculate the Total Contribution (2 marks)

Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).

Calculate the Contribution per unit (1 mark)

Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).

Calculate the Profit or Loss (1 mark)