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# Practice Assessment 2 - Task 8 b.

AAT Student Posts: 129
I
It's just the part that asks for the required sales volume in units that I need a prompt with?

• AAT Student, AATQB Posts: 264
We need to see the fixed costs in (a)
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• AAT Student Posts: 129
> @dumutroba said:
> We need to see the fixed costs in (a)

Ok, I can’t access them right now but what do we do with them once we have figure? Thanks.
• AAT Student, AATQB Posts: 264
edited July 2018
For the break even formula we need fixed costs to be divided to contribution(selling price less variable costs)
From a you can possible fill most of the gaps and come to the answer
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• AAT Student Posts: 129
> @dumutroba said:
> For the break even formula we need fixed costs to be divided to contribution(selling price less variable costs)
> From a you can possible fill most of the gaps and come to the answer

Why do we need break even though if there’s a desired profit margin of 25%?
• AAT Student, AATQB Posts: 264
edited July 2018
Profit margin is your gross profit, this is the formula sales less cost of sales (variable and fixed production costs) in this case 25%margin 75% cost of sales 100% sales
I can't still come to an answer as I can't see all figures
I will try when I get back home
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%