Question
Read the case study below and answer the questions that follows: YXZ cc Paul and Hennie have financed their business from their own savings. In
Read the case study below and answer the questions that follows: YXZ cc Paul and Hennie have financed their business from their own savings. In the beginning (2019) the output was very low (500 kg cheese per month) and grew slowly to a high output (1 800 kg cheese per month) in 2018. Hennie has many ideas for new products. He forecasts that sales will continue to grow by 5% each year from 2019. Hennie and Paul have discussed the following The following information was taken from the books of YXZcc: 2020 Factory overheads N$3 000 per month Raw material N$5/kg Transport costs N$3/kg Retail selling price N$15/kg 2021 Factory overheads N$3 500 per month Raw material N$8/kg Transport costs N$5/kg Retail selling price N$22/kg (i) Calculate the breakeven point both in units and sales revenue for 2020 and 2021. Show all the calculations. a) BEP in Units2020 (3) b) BEP in Units 2021 (3) c) Sales revenue 2020: d) Sales revenue 2020 (2) e) Calculate the total cost 2020 and 2019 (3) (ii) Explain your results in (i).
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