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Question 5 A profit/volume (P/V) chart of two companies (A and B) for a period follows: Required: By reference to the above chart, justify your

Question 5 A profit/volume (P/V) chart of two companies (A and B) for a period follows: Required: By reference to the above chart, justify your conclusion to: a. i. Estimate the break-even sales revenue of Company A. (5 marks) ii. Estimate the total fixed costs of Company A. (5 marks) iii. State which company has the higher contribution/sales ratio. (5 marks) iv. Estimate the level of sales at which the profit of the two companies is the same. (5 marks) b. Calculate the contribution/sales ratio of Company A and use this to confirm, by calculation, the break-even point identified in Question 4 (a)(i) above. (5 marks)

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