Extension 0'! Cost-Profit Analysis practice medians Question 1 The launch of a new product is being considered and four possible output levels are being considered depending on consumer reaction. The variable costs associated with these levels are shown below: Consumer reaction Adverse Average Good Excellent Variablecosts(000) '20 lac 45 3'0 There are fixed costs of Shs.36,000 and the CS ratio is expected to be 60%. Required: i. The profit or loss at each of the four levels' ii. The break-even point in sales value Iii. The level of sales at which a profit of Shs.10,000 would be made Question 2 A manufacturing store produces two products. A and B. These account for 40% and 60% of the total sales for the company respectively. Variable costs (as a percentage of sales) are 40% for A and 50% for B. Total fixed costs are 540,000. Required: at) Calculate the break- even point in sales Question 3 The following are the two products from which a company needs to earn a profit of Shs.50,DDD. after deducting fixed costs of Shs.90.000. ' Selling price per unit ' Variable cost per Budgeted sales unit (Units) Product X Shs.100 Shs.64 500 Product Y Shs.150 Shs.?6. 50 1250 Required: Calculate the break-even point for each of the products