(a) What are the Limitations of Break-Even Analysis?

(b)

( b ) Kenna Led manufactures a single product in a factory that is capable of producing* 50, 000 units per year . A budgeted Income Statement for the current year is shown below . Sales ( 50, 000 Units) 500, 000 Less, Cost of Goods Sold. Variable Manufacturing Cost 150, 000 Fixed Manufacturing Cost 160, 000 310, 000 Gross Profit 190 , 000 Less, Selling and Administrative Expenses :" Variable* 50, 000 Fixed 20, 000 70, 000 Net profit 120 , 000