A. Draft a schedule showing the profit and loss for each period up to ten (10) periods increasing by 2000 units respectively. B. Draw a break even chart from the data in this schedule clearly identifying the breakeven point C. Calculate the breakeven units and breakeven sales

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC Ltd has the following details for the year ending December 31, 2009

Fixed cost  - $10,000

Variable cost per Unit $ 3

Selling price per unit $ 5

Production                 2000 units per period

Required

A. Draft a schedule showing the profit and loss for each period up to ten (10) periods increasing by 2000 units respectively.

B. Draw a break even chart from the data in this schedule clearly identifying the breakeven point

C. Calculate the breakeven units and breakeven sales

D. How many units the company needs to sell to make a profit of $ 8,000.

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