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A cost-volume-profit (CVP) chart of two companies in the SUKA TENIS Group (A and B) for the year 2023 is as follows: 100 Company A
A cost-volume-profit (CVP) chart of two companies in the SUKA TENIS Group (A and B) for the year 2023 is as follows: 100 Company A 75 Company B Profit 50- R3000 25- 0 50 100 150 200 250 3000 400 450 500 550 600 Required: a) Referring to the above chart, estimate the break-even sales revenue of Company A b) Referring to the above chart, estimate the total fixed costs of Company A. c) Conclude which company has the higher contribution/sales ratio. d) Estimate the level of sales at which the profit of the two companies is the same. e) Calculate the contribution/sales ratio of Company A and use this to confirm, by calculation, the break- even point identified in (a) above. f) There are a few assumptions the accountant of Company A must make when preparing the above analysis. Describe the underlying assumptions when performing the CVP analysis. g) Differentiate between "Direct material costs" and "Direct labor costs". 25 50 75- Los 100- 125 150- 175 200 RAF000 Sales revenue
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