Home For AAT student members AQ 2016 Advanced Diploma in Accounting Synoptic Assessment - Advanced
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Mock Exam Help

sophie_612sophie_612 LondonRegistered Posts: 107
Hi,

I think i'm having a memory block with everything i need to remember for this exam, i've attached an image fro the mock exam would someone be able to explain to me how they worked out the break even and the margin %.

Thanks
Sophie

Comments

  • dumutrobadumutroba AAT Student, AATQB Posts: 264
    Hi Sophie
    The break even is your total fixed overheads divided by the contribution per unit
    325000/40=8125
    Margin of safety is your total sales in units less break even sale divided by total sales
    10000 - 8125/10000=18.75 or 19%

    Good luck in your exam
    AAT Level 2. 2018 Distinction
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  • sophie_612sophie_612 LondonRegistered Posts: 107
    dumutroba said:

    Hi Sophie

    The break even is your total fixed overheads divided by the contribution per unit

    325000/40=8125

    Margin of safety is your total sales in units less break even sale divided by total sales

    10000 - 8125/10000=18.75 or 19%



    Good luck in your exam

    thank you so much for your help :)
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