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Question 6 A cost-volume-profit (CVP) chart of two companies (A and B) for a the year 2020 is as follows: 75 Company B Profit 50

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Question 6 A cost-volume-profit (CVP) chart of two companies (A and B) for a the year 2020 is as follows: 75 Company B Profit 50 RMT000 25 Sales revenue 1 50.. 200i 250 50500550 600 RMO 50 1 00 25 50 75 Loss 100 125 150 RAI000 175 200 Required (a) Referring to the above chart, estimate the break-even sales revenue of Company A; (b) Referring to the above chart, estimate the total fixed costs of Company A (c) State which company has the higher contribution/sales ratio (justify your conclusion); (d) Estimate the level of sales at which the profit of the two companies is the same. (2 marks) (2 marks) (3 marks) (2 marks)

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