Solution-Prepare an amended profit curve where the market

Prepare an amended profit curve where the market forces

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Reference no: EM131822826

The summary results of Donlon Ltd are as follows:

Product	A	B	C	Total
	Shs.000	Shs.000	Shs.000	Shs.000
Sales revenue	300	200	100	600
Variable costs	150	120	70	340
Contribution				260
Fixed costs				100
Net profit				160
Contribution sales ratio	0.5	0.4	0.3	0.433

Required

Prepare a profit volume graph which shows the overall results for Donlon Ltd

Prepare an amended profit curve where the market forces have led to a switch of Shs. 200,000 of sales from product A to product C

Prepare a summary which shows the value of each of the following for both the original results and the amended results

Net profit

Break-even point

Margin of safety

Overall contribution sales ratio

Reference no: EM131822826

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Prepare an amended profit curve where the market forces

Reference no: EM131822826

Reference no: EM131822826

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