Shona, a sole trader, owns and manages a business which manufactures and sells small instruments for hospitals and other medical facilities Set out below is the sales revenue and profit for 2019 Year Sales Profit 2019 431,640 147,390 In 2019 the business manufactured and sold 132,000 units and had fixed costs of 147,000 All other costs were variable Illustrate your answers to (a), (b) and (c) above on a breakeven chart that shows revenue, total cost and fixed cost lines with an appropriate legend for each Your chart should be labelled with an arrow that points to the breakeven point as well as to the margin of safety area Shona had considered spending an additional 12,000 on marketing in 2019 She predicted that such an additional investment would have increased the sales and production volume in the year to 144,000 units at a better selling price of 3 85 She also predicted there would have been no other changes to her fixed costs for the year nor any changes to the variable cost per unit i If her predictions had proved correct, what would have been her new profit for the year ii If her predictions had proved correct, what would have been her new breakeven point, in units, for the year (Answers for all breakeven questions should be rounded up to the nearest whole number or pound )

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Shona, a sole trader, owns and manages a business which manufactures and sells small instruments for hospitals and other medical facilities.

Set out below is the sales revenue and profit for 2019.

Year	Sales	Profit
2019	431,640	147,390

In 2019 the business manufactured and sold 132,000 units and had fixed costs of 147,000. All other costs were variable.

Illustrate your answers to (a), (b) and (c) above on a breakeven chart that shows revenue, total cost and fixed cost lines with an appropriate legend for each. Your chart should be labelled with an arrow that points to the breakeven point as well as to the margin of safety area.
Shona had considered spending an additional 12,000 on marketing in 2019. She predicted that such an additional investment would have increased the sales and production volume in the year to 144,000 units at a better selling price of 3.85. She also predicted there would have been no other changes to her fixed costs for the year nor any changes to the variable cost per unit.
- i.If her predictions had proved correct, what would have been her new profit for the year?
- ii.If her predictions had proved correct, what would have been her new breakeven point, in units, for the year? (Answers for all breakeven questions should be rounded up to the nearest whole number or pound.)