With the aid of diagrams, explain cost as variable, fixed, or mixed. (1 mark)

b. With detail examples, explain the methods of separating mixed cost into fixed and variable costs (1 mark)

c. What is break-even point, explain with a good example and a diagram (1 marks)

d. Explain the meaning of contribution margin with a good example (1 marks)

e. A vehicle spare parts dealer has the following information in her operating budget.

Sales were $1,020,000 with fixed costs for the period of $160,000. The total variable cost

was $581,400.

Required:

i, The contribution margin

ii Contribution rate

iii Break-even point in sales dollars