Question 4: Cost-volume-profit analysis 25 MARKS a. At a recent board meeting, the CFO of Auckland Corporation has presented the following contribution format income statement for April.

Sales (units)	50,000
Sales (dollar)	$450,600
Variable expenses	$250,600
Contribution margin	$200,000
Fixed expenses	$97,000
Net operating income	$103,000

During the board meeting, the CFO also presented information about the companys break-even point (in terms of units) and margin of safety (in terms of dollar sales). However, the General Manager (Operations) could not attend the meeting because she was in another important meeting with suppliers. The next day, the General Manager (Operations) requested the CFO to provide her a brief update about yesterdays board meeting. Imagine yourself as the CFO and write down your responses to the General Manager (Operations) regarding what was the companys break-even point (units) and margin of safety (dollar sales) and what do these numbers mean for the company? [Maximum word limit: 390 words, including both text and numbers]

(13 marks)

b. Moore Doughlas has recently joined Pittsburg Company as a Graduate Trainee. One of his main roles is to perform various types of cost and profit analysis and report the findings to Jesmine Xin the Finance Business Partner. Recently, Jesmine asked Moore to conduct an analysis focusing on what the companys current cost structure is and how it is affecting the companys profitability. However, Moore is not fully sure about doing that analysis and requested Jesmine to provide him a brief training on this topic (i.e., cost structure and profitability). Imagine yourself as Jesmine and write down your responses to Moore. [Maximum word limit: 360 words]

(12 marks)

plz just answer question b