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Q3 both M and N taken as 9 A firm plans to make and sell security systems for 1600 each next year in a workshop
Q3 both M and N taken as 9
A firm plans to make and sell security systems for 1600 each next year in a workshop with annual overheads of EAMN,000 (where MN are to be substituted by the last two non-zero digits of your Student ID. Hence, the value of the annual overheads are in the range E411,000 to 499.000 depending upon your personal details) Product Costings Materials & Machining E210 Direct Labour 120 Assembly costs 50 Table Q3 a) Using the costing data given in Table 03: Sketch a CVP chart for the workshop up to 5,000 units in steps of 1,000 units on the horizontal axis) with lines showing Overheads: Total Costs and Sales Revenues (50%) 11) Calculate the Break-even Point (using Overheads Product Contribution) for the workshop - show your workings (10%) iii) Examine the Margin of Safety for the workshop given that Expected Sales are 2,600 units. (10%) b) If the Overheads increase by 50,000: re-calculate the Break-even point and the Margin of Safety for the workshop - do you advise the upgrade? (30%) Step by Step Solution
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