Question: Topsys Trailers makes small trailers for towing light loads. The businesss accountant has undertaken CVP analysis on its main product the Tipping Trailer

Topsy’s Trailers makes small trailers for towing light loads. The business’s accountant has undertaken CVP analysis on its main product – the Tipping Trailer – and presented the results to the owner, Topsy, in the following profit graph: $1 200 000 $1 000 000 $800 000 $600 000 $400 000

Required:
a Label the lines on the graph b Use the graph to determine:
i the break-even point in units ii the fixed costs.
c Use the break-even formula in units to determine the contribution per unit.

$1 200 000 $1 000 000 $800 000 $600 000 $400 000 Profit graph - Tipping Trailer $200 000 0 50 100 150 200 250 300 350 400 450

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