M GmbH is a company which currently manufactures 3 products A, B and C This takes place in three production stages I, II and III The following table shows the respective production times of the products in the individual production stages product production I production II production III A 2h 4h 3h B 3h 3h 3h C 2h 2h 2h The respective production stages have an annual maximum capacity of production hours (h) in the amount of I 2,400h, II 3500h, III 3600h In 2020 M GmbH produced and sold a total of 300 pieces of product A, 400 pieces of B and 300 pieces of C The sales price per piece is 5,000 for A, 6,500 for B and 5,500 for C The direct material costs for the production of a respective piece are made up as follows product Direct costs production I Direct costs production II Direct costs production III Direct costs Sales(distribution) A 300 300 400 200 B 500 500 1 000 300 C 500 500 500 250 The overhead costs of the M GmbH company are as follows production I 180 000 production II 350 000 production III 252 000 Rent halls 960 000 storage costs 140 000 management 190 000 borrowing costs 178 000 Distribution 250 000 The respective production stages are located in a large hall divided into three sections The three sections 1 3 each have an area of F1 450 square meters, F2 350 square meters and F3 250 square meters Production I can be found in F1, production II in F2 and production III in F3 Since production I does not fill the entire hall F1, 100 square meters are currently used as parking space for sales vehicles and 100 square meters are unused You will be hired to support the management as a controller of M GmbH and after a short training period you will find out that M GmbH currently has no real calculation and planning area At the moment, decisions are often made spontaneously in the situation In order to improve this, you will be entrusted with the following tasks and asked to prepare a corresponding report for the management Exercise part 3 The management asks you to explain the concept of the break even analysis and to apply it to M GmbH

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M GmbH is a company which currently manufactures 3 products A, B and C. This takes place in three production stages I, II and III.

The following table shows the respective production times of the products in the individual production stages:

product	production I	production II	production III
A	2h	4h	3h
B	3h	3h	3h
C	2h	2h	2h

The respective production stages have an annual maximum capacity of production hours (h) in the amount of I = 2,400h, II = 3500h, III = 3600h. In 2020 M GmbH produced and sold a total of 300 pieces of product A, 400 pieces of B and 300 pieces of C. The sales price per piece is € 5,000 for A, € 6,500 for B and € 5,500 for C.

The direct material costs for the production of a respective piece are made up as follows:

product	Direct costs production I	Direct costs production. II	Direct costs production. III	Direct costs- Sales(distribution)
A	300 €	300 €	400 €	200 €
B	500 €	500 €	1.000 €	300 €
C	500 €	500 €	500 €	250 €

The overhead costs of the M GmbH company are as follows.

production I	180.000 €
production II	350.000 €
production III	252.000 €
Rent halls	960.000 €
storage costs	140.000 €
management	190.000 €
borrowing costs	178.000 €
Distribution	250.000 €

The respective production stages are located in a large hall divided into three sections. The three sections 1-3 each have an area of F1 = 450 square meters, F2 = 350 square meters and F3 = 250 square meters. Production I can be found in F1, production II in F2 and production III in F3. Since production I does not fill the entire hall F1, 100 square meters are currently used as parking space for sales vehicles and 100 square meters are unused.

You will be hired to support the management as a controller of M GmbH and after a short training period you will find out that M GmbH currently has no real calculation and planning area. At the moment, decisions are often made spontaneously in the situation. In order to improve this, you will be entrusted with the following tasks and asked to prepare a corresponding report for the management.

Exercise part 3:

The management asks you to explain the concept of the break-even analysis and to apply it to M GmbH.