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A friend of yours has asked you to use your cost volume profit skills gained in AC1 to help analyse a new business des. They
A friend of yours has asked you to use your cost volume profit skills gained in AC1 to help analyse a new business des. They have provided you Selling price Fixed costs $9.35 $18,000 $4.25 Variable costs per unit 4) Calculate the break even units the following info b) Calculate break even sales revenue. c) How many units would need to be sold to achieve a profit of $19,000? 6) If the cost price increased to $4.50, then they would increase the sales price to $10.00. What would the new break even units be e) If the business sold 8,000 units, and assuming the changes to cost and sales price are adopted from d), you are to calculate the expected profit. You must show all workings to achieve full marks. If you only provide the answer without workings then you will not receive any marks A- B B
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