1) Smith Ltd sells rugby balls for $20 each and incurs variable costs of $15 per ball. Smith Ltd''s break-even point is 40,000 units. What is Smith Ltd's profit when 50,000 units are sold?

Select one:

a.

None of the options given

b.

$50,000

c.

$1,000,000

d.

$250,000

2)Smith Ltd sells rugby balls for $20 each and incurs variable costs of $15 per ball. Smith Ltd's break-even point is 40,000 units. What is Smith Ltd's profit when 25,000 units are sold?

Select one:

a.

$75,000 loss

b.

None of the options given

c.

$500,000

d.

$125,000