(a) How far is it true to state that a company’s breakeven point occurs where the contribution just equals the fixed costs? (6) A company’s detailed information of costs and sales has been destroyed because of a computer malfunction. The following data has, however, been gleaned from various sources: Sales volume (units) 10,000 12,000 Costs (£): direct materials 30,000 36,000 direct labour 28,000 33,000 overheads 20,500 24,100 Selling price per unit at all volumes of output is £12.30 Calculate: (i) the cost of an additional 2,000 units of output; (ii) the variable costs of 10,000 units of output; (iii) the fixed element — if any — of each component cost; (iv) the breakeven point.