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. . Question 4 Wilson Lid produces one type of product. The budget for the year 2012 reveals the following: Selling price for unit 35
. . Question 4 Wilson Lid produces one type of product. The budget for the year 2012 reveals the following: Selling price for unit 35 Variable pir unit to Total Fixed costs 600,00 Budgeted Propit 150,00 The (EO has asked the management accountant to try and improve the budgeted profit. The poster Management Accountant has the Bllowing for any scenarios. . 5cenario A : 1 the selling price decreases by 20 t. the sales volume will increase by 14% Scenario B: \ the selling price increases sales volume will drop by 8%. Scenario C: 4 the variable 10% and the saks price increases by 20%. and the fixed cesto increase by t100 aw but the sales volume does not change. drown up by 12% the Casts increax by Question 4 was Required - a) Calculate the brea Keven point in sabes units and sales revenue for the budgeted figures above b) Personal Calculate the break even point in units only if the budgeted selling price 45 instead of 35 > Calculate the margin of safety in sales units and as a percentage or the budgeted d) for each of the three scenarios above calculate the revised profit for the year present three separate sets of data independent. state which scenario would be the best result figures above as each propose is for Wilson Ltd
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