Question
Carden Coasts Ltd manufacture waxed jackets in a small factory. Their customer is a major UK store, which purchases 1000 jackets each month. The company
Carden Coasts Ltd manufacture waxed jackets in a small factory. Their customer is a major UK store, which purchases 1000 jackets each month. The company charges 40 per jacket Fixed costs per month Rent 2400 Council tax 800 Salaries 5000 Advertising 800 Total Fixed Costs are = ___________ Manufacturing costs per jacket are:- Materials 12.00 Wages 13.00 Total Variable Cost per Jacket are = ___________ What is the contribution? (use your formulae sheet) ______________ Can you work out the break-even quantity? ___________ Using the information above complete the table below. Jackets Revenue Fixed Costs Variable Costs Total Costs Profit/Loss 0 100 200 300 400 500 600 700 800 900 1000 Use the data from the previous page to construct a Break Even Chart. Label the graph. Remember the s (up to 4500) go on the left and the Qty sold at the bottom. What lines do you need to show on a break-even graph? ____________________________________________________________ 0 100 200 300 400 500 600 700 800 900 1000
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