Revision Questions 1. You are presented with the following information for Giles Ltd for the year to 31st April 2008 : Required: Calculate the breakeven point in value and in units. 2. Looking ahead to the financial year 31 March 2008, the directors of Verstile Ltd are faced with a budgeted loss of 10,000. This is based on the following data The directors would aim for a profit of 20,000 for the year to 31 March 2008. Various proposal have been put forward, none of which require a change in the budged level of fixed costs. These proposals are as follows: 1. Reduce the selling price of each unit by 10% 2. Increase the selling price of each unit by 10% 3. Stimulate sales by improving the quality of product, which would increase the variable cost of the unit by 1.50 per unit Required: For each proposal calculate the breakeven position in units; and the number of units required to be sold in order to meet the target profit