QUESTION ONE

The sales of a company are @ ` 200 per unit 2,000,000.

Variable cost 1,200,000

Fixed cost 600,000

The capacity of the factory 15,000 units.

Determine the BEP.

How much profit is the company making.

Hint: Follow this order find; Number of Units Presently Sold by Company

Variable Cost per Unit

Contribution per Unit

BEP (in Units)

Profit