# cost behaviour and breakeven analysis

By mmashadi

@mmashadi (1)

July 6, 2006 3:00am CST

sales volume in units 15,000 22,000
selling price per unit R22.50 R27.50
Vriable costs per unit R12.50 R15.50
Fixed costs R18,000.00 R21,000.00
REQUIRED
1.Calculate the break even volume of units for each option?
2.Calculate the margin of safety for each option? which is more risky?
3.If the current structure is retained and if selling price are reduced by 10% by what percentage will the breakeven units have increased?
4 if the proposed structure is adoptable and they want to make R15000 after tax profit, how many more units will they have to sell to break even(tax is 30%)

No responses