[susan]

Lols!!! Thanks a lot Sir; I just did.

[susan]

I also have the same problem… A friend suggested i solve a lot of questions. Students with good background in Maths usually find F5 easy to understand.

[susan]

Yippeeee!!!!..

Thanks a lot sir, sorry about the mistake i made earlier on. I understand better.

[susan]

Variable cost(per $ of sale) = (6.5m – 5.44m – 0.4m) / (6.8m – 5.2m)

= 0.72/1.6 = 0.45

C/S ratio = 1 – 0.45= 0.55

The fixed cost at the lower of sales are 5.44m – (0.45 * 5.2m) = 3.1m

Breakeven sales of 3.1m/0.55m =5.636m aprox. 5.64m

The fixed cost at the higher level of sales = 3.1m + 0.4m = 3.5m

Breakeven sales rev of 3.5/0.55 = $ 6.36

ans would be B where we would have two break even points of $5.64 & $6.36

[susan]

If I should use your method the answer will be option d= $6.36m.

One quick question, why did you subtract 0.45 from 1?

[susan]

sorry the total cost figure is $5.44 million and not $5.4 as earlier stated. and yes sir the question is correct.

For the answer someone in my study group posted the question, the answer will be posted after submission of answers…

Thanks a lot Sir.

[susan]

There seem to be a bit of a problem with F2 lecture notes, take for intance the difference between Financial Accounting and Management Accounting came out blank just blue srokes, I wonder why?. Kudos to you, I love the plateform.

[Author]

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