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HOW TO CALCULATE CVP for this: QUESTION 1 Bara Co. manufactures and sells an electronic component that is used in supercomputers, ships, and aeroplanes. The

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QUESTION 1 Bara Co. manufactures and sells an electronic component that is used in supercomputers, ships, and aeroplanes. The following costs and revenue forecasts at various level of production have been made available by the management accountant. Annual production and sales (units) Sales Revenue Direct Material Direct Labour Production Overheads Non-Production Overheads Profits/(Losses) 10,000 1,800,000 400,000 500,000 500,000 820,000 (420,000) 15,000 2,700,000 600,000 750,000 550,000 820,000 (20,000) 20,000 3,600,000 800,000 1,000,000 600,000 820,000 380,000 25,000 4,500,000 1,000,000 1,250,000 650,000 820,000 780,000 All of the above costs can be classified as either fixed, variable or semi-variable. Selling price and costs have also been stable over the last few years and are expected to remain so in the foreseeable future

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