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31

【论述题】

 Prepare a contribution breakeven chart for 20X3 assuming that all sales will be 'own label'. 

 Prepare a contribution breakeven chart for 20X3 assuming that 50% of sales are 'own label' and 50% are of the BD brand. 

 Comment on the positions shown by the charts and your calculations and discuss what other factors management should consider before making a decision. 

 Mark the following on the P/V chart below.

 • Breakeven point                                • Contribution

 • Fixed costs                                         • Profit 



 Choose the appropriate words from those highlighted and fill in the blanks. 

When showing multiple products individually on a P/V chart, the products are shown from left to right/right to left in order of increasing/decreasing size of C/S ratio. The line joining the two ends of the dotted line (which shows_________.) indicates _______ 

Choose the appropriate words from those highlighted. 

The assumption in breakeven analysis that variable cost is the same per unit at all levels of output is a great simplification. The variable cost per unit will decrease where (1) economies/diseconomies of scale are made at higher volumes of output, but will also eventually rise where (2) economies/diseconomies of scale begin to appear at even (3) higher/lower volumes of output. 

 A company makes and sells two products, X and Y. The following budget has been prepared. 



What is the breakeven point in sales revenue, to the nearest $100? 

 A product has the following costs. 

                                                                 $ 

Direct materials                                  15 

Direct labour                                          9 

Variable overheads                             16

 Fixed overheads are $9,000 per month. Budgeted sales per month are 450 units to allow the product to break even. 

Fill in the blank in the sentence below.  

The mark-up which needs to be added to marginal cost to allow the product to break even at the budgeted units is _______   %.  

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28

【论述题】

 What is the budgeted profit per month and what is the breakeven point in sales? 

 What is the margin of safety?