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Profits and contribution are shown in Appendix 1 (ie with adjustments for growth etc.)
ROCE = PBIT/CE = 42/326 = 13% for Cheerful.
Breakeven sales = 0.83m units. Budgeted sales = 1.12 units
Sales can fall by 1.12 – 0.83 = 0.29m units before hitting break-even.
% fall = margin of safety = 0.29/1.12 = 26%
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