A. Calculate the break even point for peason and litt for 2019 and 2020. B. Compare the results of the 2019 and 2020 break even points and explain why there might be a difference

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Good evening. 

Please help me with this question from my textbook.

 

A. Calculate the break even point for peason and litt for 2019 and 2020.

B. Compare the results of the 2019 and 2020 break even points and explain why there might be a difference 

 

Consider the information provided below as well as the financial statements and answer the
questions that follow.
Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass
wine bottles for the Blue Valley Beer Co.
2019
2020
Sales price per unit
R15
R19
Variable cost per unit
RG
R7
Fixed cost (FC) per annum
R650 000
R 855 500
Fixed cost per unit
R3
R4
Current assets
R450600
R560 700
Current liabilities
R510000
R780 000
Retained profit
R21 809
R17600
Net Sales
R2 900 320
R3100 100
Cost of sales
R390 000
R475000
Transcribed Image Text:Consider the information provided below as well as the financial statements and answer the questions that follow. Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co. 2019 2020 Sales price per unit R15 R19 Variable cost per unit RG R7 Fixed cost (FC) per annum R650 000 R 855 500 Fixed cost per unit R3 R4 Current assets R450600 R560 700 Current liabilities R510000 R780 000 Retained profit R21 809 R17600 Net Sales R2 900 320 R3100 100 Cost of sales R390 000 R475000
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