ZED ple manufactures one standard product, which sells at £10. You are required to:

(a) prepare from the data given below, a graph showing the results for the six months ending 30 April and to determine:

(i) the fixed costs;

(ii) the variable cost per unit;

(iii) the profit-volume ratio;
(iv) the break-even point;
(v) the margin of safety;

(b) discuss the limitations of such a graph;

(c) explain the use of the relevant range in such a graph.LO1

Transcribed Image Text:

Month Sales (units) Profit/(loss) () November 30 000 40 000 December 35 000 60 000 January 15000 (20000) February 24 000 16.000 March 26000 24000 April 18000 (8 000)