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Q2. (25 marks) Break Even Analysis Alka Trucking distributes a single product. The company's sales and expenses for last month follow: Per Unit $ Sales
Q2. (25 marks) Break Even Analysis Alka Trucking distributes a single product. The company's sales and expenses for last month follow: Per Unit $ Sales Variable expenses Total 936,000 592,800 60 38 22 Contribution margin Fixed expenses 343,200 253,600 Net operating income 89,6001 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? Provide full steps along with formulas used. Explain figures for full marks. (10 marks) 2. How many units would have to be sold each month to earn a target profit of $85,000? Explain (5 marks) 3. Explain the cost-volume-profit analysis from a manager's perspective. What are five elements? What are benefits? (10 marks)
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