Student workpoint 3.7 Be knowledgeable The following information was provided by David, a candle producer, based on his monthly production and sales. Table 3.3.1 Quantity Price per Revenue Fixed of candle candle from bоxes Variable Total Profit/ costs costs costs (Loss) (uSs) (USs) (USS) box candle (USS) box sold [Total] [Total] (USS) sold (USS) $10 2,000 2,000 (2,000) 200 $10 2,000 2,000 1,200 3,200 400 $10 4,000 2,000 2,400 4,400 600 $10 6,000 2,000 3,600 5,600 800 $10 8,000 2,000 4,800 6,800 1200 1,000 $10 10 000 2,000 6,000 8,000 1,200 s10 12 000 2,000 7,200 9,200 Referring to Table 3.3.1, answer the questions below. 1. Complete the profit/(loss) column. 2. Calculate the variable cost per candle box. 3. Draw a break-even graph using the information in the table and show the break-even quantity on your graph. 4. Show on the graph the margin of safety at 1,200 candle boxes sold.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Student workpoint 3.7
Be knowledgeable
The following information was provided by David, a candle producer,
based on his monthly production and sales.
Table 3.3.1
Quantity Price per Revenue Fixed
Variable
Total
Profit/
of candle candle
from
costs
costs
costs
(Loss)
(USS)
box sold [Total] [Total)
(US$S)
(USS)
boxes
box
candle
(USS)
sold
(USS)
(USS)
$10
2,000
2,000
(2,000)
200
$10
2,000
2,000
1,200
3,200
400
$10
4,000
2,000
2,400
4,400
600
$10
6,000
2,000
3,600
5,600
008
1,000
$10
8,000
2,000
4,800
6,800
1200
$10
10 000
2,000
6,000
8,000
1,200
s10
12 000
2,000
7,200
9,200
Referrring to Table 3.3.1, answer the questions below.
1. Complete the profit/(loss) column.
2. Calculate the variable cost per candle box.
3. Draw a break-even graph using the information in the table and
show the break-even quantity on your graph.
4. Show on the graph the margin of safety at 1,200 candle boxes sold.
Transcribed Image Text:Student workpoint 3.7 Be knowledgeable The following information was provided by David, a candle producer, based on his monthly production and sales. Table 3.3.1 Quantity Price per Revenue Fixed Variable Total Profit/ of candle candle from costs costs costs (Loss) (USS) box sold [Total] [Total) (US$S) (USS) boxes box candle (USS) sold (USS) (USS) $10 2,000 2,000 (2,000) 200 $10 2,000 2,000 1,200 3,200 400 $10 4,000 2,000 2,400 4,400 600 $10 6,000 2,000 3,600 5,600 008 1,000 $10 8,000 2,000 4,800 6,800 1200 $10 10 000 2,000 6,000 8,000 1,200 s10 12 000 2,000 7,200 9,200 Referrring to Table 3.3.1, answer the questions below. 1. Complete the profit/(loss) column. 2. Calculate the variable cost per candle box. 3. Draw a break-even graph using the information in the table and show the break-even quantity on your graph. 4. Show on the graph the margin of safety at 1,200 candle boxes sold.
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