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ompuspeed is an agency operation selling a computer software packag for a major computer company. The budget has been prepared for th coming year as
ompuspeed is an agency operation selling a computer software packag for a major computer company. The budget has been prepared for th coming year as follows: Sales (5,000 units) 750,000 Variable Cost of Sales Fixed Costs: Administration 500,000 70,000 80,000 100,000 Selling & Distribution Profit Require (a) Calculate the C/S Ratio. (2 marks) Calculate the break even point in units and value. (b) (8 marks) (c) Calculate the margin of safety in units and value. (5 marks) CONSDER (d) and (e) SEPARATELY (d) The company would like to improve profits by 50%-how mani extra nits must be sold to earn the target profit if the sellinij price could only be increased by 5% but the variable cost of sale increased by 10%? (5 marks) e) The marketing manager feels that employing an extra sales representative at a cost of 25,000 per annum will increase sales to 6,000 umits. Calculate the resulting profit nd the break even in units if the sales representative was recruited
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