QUESTION ONE

a. You are presented with the following information for Unilever Ghana Ltd.

Fixed costs GH150,000

Total costs GH 400,000

Sales (50,000 units) GH 500,000

Required:

Calculate the following:

(a) Break-even point in value terms and in units. (5marks)

(b) Margin of safety in value and in units. (5marks)

(c) Budgeted Profit for the period. (3marks)

(d) What is the relationship between sales revenue and margin of safety? (2marks)

b. State five (5) uses of the Cost- Volume- Profit (CVP) Analysis. (5marks)