Using the information in the case study and your cost breakdown in Question $1$:

$$ Create a data table that demonstrates the types of costs and related variables.

$$ Draw a graph to illustrate the relationship between your cost, volume, and profit.

Hint: Label your graph appropriately. You will get marks for drawing every individual line

that contributes to the calculation of the break$-$even point $($i$.$e$.$ variable cost, fixed cost, total

cost and revenue$),$ as well as for indicating the break$-$even point, profit area and loss area on

the graph. Case study $$ Pop$-$up:

You own a small mobile store that sells popcorn $($usually outside The Leverton $-$ Graham$$s cinema$).$ This small business is called Pop$-$up$,$ and has been operating for a number of years. It is transportable and you are hired out for other events like sport matches, $21$st birthday parties, and sometimes even weddings. You feel it is time to move on in your career, so you are deciding whether or not to sell the small business or pass it on to your brother, who is studying to be an accountant. Before you do this, you need to get the financials and management accounts in order so that you can prove this is a profitable business. You have the following information about your business and its monthly expenses and figures:

$$ You sold $4,800$ packets of popcorn this past month and produced $5,000$ packets.

$$ Each packet of kernels is $500$g$,$ which costs R$10$ to buy from your suppliers.

$$ Each packet of popcorn sold contains $100$g of popcorn kernels.

$$ You sell the popcorn for R$15$ a bag.

$$ The mobile store depreciates at R$335$ per month.

Other costs that were incurred while making the popcorn are the following:

$$ Electricity amounted to R$1200$ this past month. $($In previous months it was R$1400$ at the highest level of activity when you made $6000$ bags of popcorn and R$1000$ at the lowest level of activity when you made $4000$ bags of popcorn.$)$

$$ Paper bags are R$110$ for $200$ bags.

$$ You pay yourself a salary of R$10000$ a month. Cost Categorization and Calculations:

Variable Costs:

Popcorn Kernels:

$$ Kernels according to bag: $100$g

$$ Cost in keeping with $500$g packet: R$10$

$$ Cost according to bag: R$10500$g$100$g$=$R$2$

Paper Bags:

$$ Cost in line with bag: R$110200$bags$=$R$0\mathrm{.}55$

Fixed Costs:

Depreciation: R$335$

Salary: R$10,000$

Electricity $($We$\text{'}$ll estimate this based at the high$-$low technique$)$:

$$ Variable cost according to unit: R$1,400$R$1,0006,000$bags$4,000$bags$=$R$0\mathrm{.}20$ according to bag

$$ Fixed fee factor: R$1,400($R$0\mathrm{.}20\backslash$times $6,000$bags$)=$R$200$

Total Costs:

Total Variable Cost consistent with Unit: R$2($kernels$)$ R$0\mathrm{.}55($bag$)=$ R$2\mathrm{.}55$

Total Fixed Costs: R$335($depreciation$)$ R$10,000($income$)$ R$200($energy$)=$ R$10,535$

Break$-$Even Point Calculation:

The ruin$-$even factor $($BEP$)$ is the variety of units you want to promote to cover all expenses. We can calculate it the usage of the subsequent components:

BEP $($in units$)=$Total Fixed Costs $/($Selling Price per Unit$$Variable Cost per Unit$)$

Plugging in our values:

BEP$=$R$10,535/$R$15$R$2\mathrm{.}55$

BEP$=$R$10,535/$R$12\mathrm{.}45$

BEP$=$R$846\mathrm{.}17$

Since you can't sell parts of packets, we round up to the closest whole variety.

The ruin$-$even factor, the quantity of popcorn packets had to cowl all prices, is calculated by dividing the whole fixed expenses $($R$10,535)$ with the aid of the contribution margin consistent with unit $($selling fee $-$ variable value, or R$15-$ R$2\mathrm{.}55).$ Therefore, you need to promote about $847$ packets of popcorn to interrupt even.

You need to promote about $847$ packets of popcorn to interrupt even