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You need to calculate the contribution per unit and the break event point and Now plot the figures on a break-even chart: Business HND Assignment, KU, UK

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You need to calculate the contribution per unit and the break event point and Now plot the figures on a break-even chart: Business HND Assignment, KU, UK

UniversityKingston University(KU)
SubjectBusiness HND

DM Foods Ltd has set up a subsidiary business selling gourmet food boxes.  The fixed costs are £3000 and the variable costs per gourmet food box are £5.  Each gourmet food box sells for £25.

  1. You need to calculate the contribution per unit and the break event point.
  2. Now plot the figures on a break-even chart and label the break-even point. The vertical axis can go up to 5500 and the horizontal axis can go up to 300.
  3. What would DM Foods Ltd’s margin of safety be if they actually sold 250 boxes? What does this mean for the business?
  4. If DM Foods Ltd were to increase the price of the gourmet food boxes to £35 per box, what would the break-even point be?

 

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