8 Question 5 A profit/volume (PN) chart of two companies (A and B) for a period follows: 100 Company A 75 Company B Profit 50- RM1000 25 0 507 100 150 200 250 300 50 500 550 600 Sales revenue RM1000 25 50 75 - Loss 100 RM1000 125 150 175 200 Required: By reference to the above chart, justify your conclusion to: a. I. Estimate the break-even sales revenue of Company A. (5 marks) ii. Estimate the total fixed costs of Company A. (5 marks) iii. State which company has the higher contribution/sales ratio. (5 marks) iv. Estimate the level of sales at which the profit of the two companies is the same. (5 marks) b. Calculate the contribution/sales ratio of Company A and use this to confirm, by calculation, the break-even point identified in Question 4 (a)(i) above. (5 marks) END OF QUESTION PAPER Question 5 A profit/volume (P/V) chart of two companies (A and B) for a period follows: 100 75 Company A Company B Profit 50 RM1000 25 0 Bo 100 150 200 250 000 1050 500 550 600 RM1000 - 0 0 0 Sales revenue 25 - 50 75 Loss 100 RM1000 125 150 175 200 Required: By reference to the above chart, justify your conclusion to: a. I. Estimate the break-even sales revenue of Company A. (5 marks) ii. Estimate the total fixed costs of Company A. (5 marks) iii. State which company has the higher contribution/sales ratio. (5 marks) iv. Estimate the level of sales at which the profit of the two companies is the same. (5 marks) b. Calculate the contribution/sales ratio of Company A and use this to confirm, by calculation, the break-even point identified in Question 4 (a)(i) above