Question 3

Following data is from Charlie Ltd. data shows sales $5,000,000 and per unit sale price $4.

Accounts Total Variable Fixed

Material $1,000,000 $1,000,000 $ 0

Labor $1,400,000 $1,400,000 $ 0

Overhead $1,600,000 $400,000 $1,200,000

Marketing Expenses $350,000 $150,000 $200,000

Admin Expenses $250,000 $50,000 $200,000

You are required to calculate the break-even in

1. Sales (Dollars),
2. Units and
3. Capacity

(hints calculate total fixed & variable costs; calculate #unit sold, calculate the margin per unit)