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4. The following information is related to Amy's clothing business: Output (unit) Fixed cost Total variable cost Sales Total cost Profit (loss) revenue (RM) (RM)
4. The following information is related to Amy's clothing business: Output (unit) Fixed cost Total variable cost Sales Total cost Profit (loss) revenue (RM) (RM) (RM) (RM) (RM) 0 1,000 - 1,000 - (1,000) 100 1,000 300 1,300 800 (500) 200 1,000 600 1,600 1,600 300 1,000 900 1,900 2,400 500 400 1,000 1,200 2,200 3,200 1,000 500 1,000 1,500 2,500 4,000 1,500 Based on the above information, answer the following questions: a) Describe what is break-even point. (4 Marks) b) Prepare a graph of the break-even point. From the graph, determine the break-even point in units and revenue. (14 Marks) c) Explain when the company is making a profit and when it is suffering a loss? (2 Marks)
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