c) Break even point analysis is an important financial analysis tool used by business

owners.

i) Explain the importance of break even analysis.

ii) What are its advantages and limitations ?

D) Robert Industries produces a single product. The following are the financial numbers related to this product.

Selling Price = $250 per unit

Variable cost =$100 per unit

Fixed Costs = $56,000

The Management wants to know the following :

1.Contribution per Unit

2.Contribution Margin ratio

3.Break even point in Units

4.Breakeven Point in sales

5.Calculate Sales value in $ to earn profit of $50,000.