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Hello sir,
In part C of the question,it says
“Calculate the breakeven point in sales value of Project 1”
I have looked at the marking scheme, and a contribution to sales ratio was calculated. I don’t know if i have misunderstood the question.
The normal (and the quickest) way of calculating the breakeven sales revenue is to divide the fixed costs by the CS ratio. I explain this in my free lectures – it seems that you are not watching them.
However, you can alternatively calculate the breakeven units and from that calculate the revenue (as the examiners answer shows as an alternative). It doesn’t matter which way you do it – the answer is the same!
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