# Help with ECR PAPER

Registered Posts: 17 Dedicated contributor ? ? ?
Can any one help with pass paper dec07, section 2

Calculate the budgeted break even sales in litres,

I thought that you take the fixed cost of 2,300/ 0.88

Why in the answer does it show 0.88-0.38, where does the 0.38 come from??

• Registered Posts: 2 New contributor ?
Debbie

To find your breakeven point (BEP) you need to divide Fixed Costs by Contribution, to find the Contribution you need to do work out Selling Price - Variable Costs - does that help (without giving you the actual answer!?). If not let me know and I'll break it down further.
• Registered Posts: 1 New contributor ?
help with ECR paper

Hi,

The 0.38 is the total variable cost per unit. To calculate break even you divide fixed costs by selling price less variable costs
• Registered Posts: 17 Dedicated contributor ? ? ?
Thanks guys, I didnt think that you had to refer back to task 2.1 for some of the figures.

I have already failed section 2 twice, in 2006, so trying again. Already passed FRA, and DFS of level 4, I find costing so much harder.

Also need help on Task 2.4, how do you work out the allocated machine hours as 4,000 to product S782 and 2,000 to product S893, THEN HOW DO YOU WORK OUT THE THOUSAND LITRES MADE FIGURE?

Thanks
• Registered Posts: 2 New contributor ?
Debbie