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XYZ Ltd has the following details for the year ending December 31, 2017
Fixed cost $10,000
Variable cost per unit $ 2
Selling price per unit $ 6
Production 1000 units per period
Required:
Question a) Draft a schedule showing the profit and loss for each period up to six (6) periods.
Question b) Draw a break even chart from the data in this schedule. Show the break even units and break even sales respectively.
Question c) Calculate the break even units and breakeven sales
Question d) Calculate how many units the company needs to sell to make a target profit of $6,000
Question e) Clearly show on the break even chart the profit or loss made if the firm is making 3,000 units
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