SECTION B Attempt any Three (3) Questions from this section QUESTION 2: Abindada Limited and Otoolege Limited are in the same industry, selling the same type of products. The budgeted costs and profit figures for the year from 1/1/2007 to 31/12/2007 are as follows: Cost: Variable Cost Fixed Cost Total Sales Total output Abindada Ltd GH 90,000 20,000 140,000 10,000 units Otoolege Ltd GH 75,000 30,000 150,000 20,000 units 2 , O, BO 19.00 From the above data you are required to calculate the following: a) i. Breakeven point for each company (2 marks) Sales for both Abindada and Otoolege Ltd, if a target profit of GH50,000 and GH65,000 respectively is expected in the coming year. (2 Marks) iii. The margin of safety for each of the two companies. (2 Marks) b) State any four (4) assumptions that underlie break even analysis. (4 Marks)