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John Moffat.
John Moffat.-
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johnmn1234
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A company estimates its sales as $ 45,000 for the first 6 months and $ 50,000 during the next six months in a financial year. Its estimated total costs are $ 40,000 and $43,000 respectively for the two periods.
Required:
At what sales volume does this company break-even, assuming that the fixed costs are equal for both the periods. [8 marks]This question is from one of the past papers of my university.
How to calculate break even when the number of units sold was not even given?
If it has given at least the selling price i would have been able to calculate number of units sold but there are none of these information.
Please Sir , can you answer this question?
John Moffat
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Why are you attempting questions for which you do not have an answer? You must use a Revision Kit from one of the ACCA approved publishers – they are all past exam and exam-standard questions and have answers and explanations.
You cannot work out breakeven units, and so the question must require breakeven sales revenue.
You can calculate the total fixed costs, and the total variable costs for each period using the high/low method.
Then you will know the CS ratio and be able to calculate breakeven revenue in the normal way.
johnmn1234
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