Mock Exam Help

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 Posts: 264AAT Student, AATQB
    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
    AAT Level 3. 2018 Distinction
    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
    Xero Certified Advisor
  • sophie_612sophie_612 LondonPosts: 107Registered
    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 :)
Sign In or Register to comment.