Dentt GmbH produces and sells a single type of specialised drilling instrument. Estimated data for total activity for next year is: Sales (20,000 units) Less Variable costs Contribution Fixed Costs Profit/(loss) Current maximum capacity is 50,000 drill instruments. 2.100.000 1.300.000 800,000 680.000 120,000 Required a) Calculate the break-even level in units and sales revenue (). c) b) Calculate the sales level (in units) required to earn a target profit of 240,600. The company is considering an investment which will increase fixed costs by 115,000 but, as a result the selling price per unit can be increased by 5 and the unit sales will increase by 1%. Advise the company on whether this investment should take place.

Dentt GmbH produces and sells a single type of specialised drilling instrument. Estimated data for total activity for next year is: Current maximum capacity is 50,000 drill instruments. Required a) Calculate the break-even level in units and sales revenue (). b) Calculate the sales level (in units) required to earn a target profit of 240,600. c) The company is considering an investment which will increase fixed costs by 115,000 but, as a result the selling price per unit can be increased by 5 and the unit sales will increase by 1%. Advise the company on whether this investment should take place. Dentt GmbH produces and sells a single type of specialised drilling instrument. Estimated data for total activity for next year is: Current maximum capacity is 50,000 drill instruments. Required a) Calculate the break-even level in units and sales revenue (). b) Calculate the sales level (in units) required to earn a target profit of 240,600. c) The company is considering an investment which will increase fixed costs by 115,000 but, as a result the selling price per unit can be increased by 5 and the unit sales will increase by 1%. Advise the company on whether this investment should take place