The following data is available concerning HF Ltds single product Q$.$

per unit per unit

Selling price ghc $50$

Variable cost

Direct material ghc $7$

Direct labour ghc $8$

Variable overhead ghc $5$

ghc $20$

Contribution ghc $30$

Fixed overhead ghc $15$

Profit ghc $15$

A total of $1,000$ units of product Q are produced and sold each month.

Requirements

$($a$)$ Using a separate piece of graph paper for each, draw the following breakeven charts and mark

on each the breakeven point, the margin of safety and the monthly profit.

$($i$)$ conventional$/$basic breakeven chart;

$($ii$)$ contribution breakeven chart;

$($iii$)$ profitvolume chart.

$($b$)$ Discuss the usefulness of each chart from a point of view of management decision$-$making.