The launch of a new product is being considered and four possible output levels are being considered depending on consumer reaction. The variable costs associated with these levels are shown below.

There are fixed costs of £36,000 and the C/S ratio is expected to be 60%.
You are required to calculate:

a. the profit or loss at each of the four levels.

b. the break-even point in sales value.

c. the level of sales at which a profit of £10,000 would be made.

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Consumer reaction Adverse Average Good Excellent Variable Costs (000's) 20 30 45 70