ZED plc manufactures one standard product, which sells at ?10. You are required to:(a) Prepare from the
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ZED plc manufactures one standard product, which sells at ?10. You are required to:(a) Prepare from the data given below, a break-even and profit?volume 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.
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