BTEC Level 3 Unit 3: Business finance Assignment Title: Investigate, plan, improve! Break-even: Activity Task 1 BSB Uniform store is producing a new Varsity Jacket for the sixth form pupils. The store has predicted its annual fixed costs will be 100,000. It plans to sell the jacket at 50 each and estimates the variable cost of producing a single jacket will be 30. They can make 7,500 jackets but forecast that demand will be 6,000 in the first year. a) Calculate the contribution per unit. b) Produce a break-even chart. c) Identify the break-even point on the chart. d) Calculate the margin of safety if demand is at full capacity. The proprietor decides to change the selling price to 45 to help attract customers. a) Calculate the new contribution per unit. b) Draw a new total revenue line on the break-even chart. c) Calculate the new break-even point using the formula. d) Comment on what has happened to the break-even point. e) Calculate the new margin of safety if demand is at full capacity. . Answer the following: Using the break-even chart identify the level of risks that the business is prone to face at the start-up of the business. Explain how this can impact the business risks. In your conclusion state a broad range of actions that the business could take to address these risks, based on the analysis of your calculations . BTEC Level 3 Business Unit 3