Question 2:  Preparation of break‐even chart with step fixed costs: Tordo GmbH manufactures various products and uses CVP analysis to establish the minimum level of production to ensure profitability. Fixed costs of 50 000€ have been allocated to a specific product, but are expected to increase to 100 000€ once production exceeds 30 000 units. Variable costs per unit are stable at 5€ per unit over all levels of activity. Revenue from this product will 7,50€ per unit

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A: The contribution margin is calculated as difference between sales and variable costs.

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A:

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A: Break even units is that number of units at which there is no profit or loss incurred.

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A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…

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A:

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Q: [Question 1] Braham Ltd manufactures a computer stand. It has fixed costs of $500,000 and each stand…

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Q: Question 2:  Preparation of break‐even chart with step fixed costs: Tordo GmbH manufactures various…

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A: The break-even sales are the sales where business earns no profit no loss during the period.