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Mammoth Furniture makes and sells a wooden garden seat known as the 'Eve. The figures for this business have not yet been set out
Mammoth Furniture makes and sells a wooden garden seat known as the 'Eve. The figures for this business have not yet been set out in the form of a table. All you have been given are the following monthly figures: Cost of timber and labor for making seat 30 per seat Selling price 60 per seat Monthly fixed costs 9,000 1. Draw up equations for total costs and sales income. (4 marks) 2. Draw up a break-even graph by first drawing a table of sales and total costs values, for production of seats in multiples of 100 from zero up to 1,000. (5 marks) X Sales Total costs 0 100 200 300 400 500 600 700 800 900 1000 3. Show where the break-even point is. (3 marks) 4. Read off the graph the profit or loss if 200 seats are produced and sold each month. (4 marks) 5. Read off the graph the profit or loss if 1,000 seats are produced and sold each month. (4 marks) [Total: 20 marks]
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