Hedges Ltd has fixed costs of £8,000. The variable costs are £4 per unit. The revenue (selling price) is £6 per unit. You are required (i) to draft a schedule as follows filling in the columns

(a) to

(f) for each stage of 1,000 units up to 10,000 units.

(a)

(b)

(c)

(d)

(e)

(f) No. of units Fixed cost Variable cost Total cost Revenue Profit Loss £ £ £ £ £ £ 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 (ii) You are also required to draw a breakeven chart from the data in this schedule. Draw it carefully to scale on a piece of graph paper. Retain your answer, you will need it for some questions which follow later.