Mock Exam Help

sophie_612

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

dumutroba

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

sophie_612

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