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:

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.

Transcribed Image Text:

$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