Unit 1: Cost-Volume-Profit Analysis Economics Worksheet With Answers - Cma311s Notes, 2010 Page 22
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27Break-even point (in sales value):
Cassettes: 1 350 units x N$2 = N$2 700
Cartridges: 900 units x N$3 = N$2 700
Total sales to break even
= N$5 400
Solution to Activity 4
Product Contribution per unit
x Sales mix
= Weighted contribution
X
N$4
0,80 (80 000 ÷ 100 000)
N$3,20
Y
N$5
0,20 (20 000 ÷ 100 000)
N$1,00
Weighted average contribution per unit
N$4,20
Fixed costs
Break-even point in units = Average contribution per unit
N$273 000
= N$4,20
= 65 000 units
Solution to Activity 5
Product
Selling price Variable cost
Contribution
Sales mix
Weighted contribution
Cassette
N$2
N$0,60
N$1,40
0,6
N$0,84
Cartridge
N$3
N$1,10
N$1,90
0,4
N$0,76
Average
N$1,60
Break-even point (in units) = Fixed cost ÷ Average marginal income
= N$3 000 ÷ N$1,60
= 1 875 units
Individual break-even sales in units:
Cassettes: 1 875 x 0,6 = 1 125 units
Cartridges: 1 875 x 0,4 = 750 units
Break-even point (in sales value):
Cassettes: 1 125 units x N$2 = N$2 250
Cartridges: 750 units x N$3 = N$2 250
Total sales to break even
= N$4 500
5.2
Required sales = (Fixed cost + Expected profit) ÷ Average marginal income
= (N$3 000 + 600) ÷ N$1,60
= 2 250 units
Individual break-even sales in units:
Cassettes: 2 250 x 0,6 = 1 350 units
Cartridges: 2 250 x 0,4 = 900 units
Break-even point (in sales value):
Cassettes: 1 350 units x N$2 = N$2 700
Cartridges: 900 units x N$3 = N$2 700
Total sales to break even
= N$5 400
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