Sales at Full capacity (units)

actual sales volume (units)

unit sale price($)
Total sales revenue($)
Variable cost per unit($)
Total variable cost($)
Fixed costs($)
Net profit($)
Ratios:
Variable Cost to sales
Variable income to sales
Utilization of capacity(%)
Contribution Margin
Break even point
Q2

Aggregrate
2000000
1500000
1.2
1800000
0.75
1125000
520000
155000

Product Lines
B

600000
1.67
999999.96
1.25
750000
170000
80000

400000
1.5
600000
0.625
250000
275000
75000

0.63
0.37
75%
0.45
1155556

0.75000003
0.24999997
30%
0.42
404762

0.42
0.58
20%
0.88
312500

Sales Volume of C increase by 450000 units

Sales Price of C increase by 100%
Fixed Cost increases by $ 10000 per month
A sales becomes 2/3

a)

Sales at Full capacity (units)

actual sales volume (units)
unit sale price($)
Total sales revenue($)
Variable cost per unit($)
Total variable cost($)
Fixed costs($)
Net profit($)
Ratios:
Variable Cost to sales
Variable income to sales
Utilization of capacity(%)
Contribution Margin
Break even point

b)

Profit ($)
Dividends ($)
Extra Dividends ($)
Income After Tax ($)

Aggregrate
2000000
1750000
1.158
2026667
0.56
987500
640000
399167

Product Lines
B

400000
1.67
666667
1.25
500000
170000
-3333

400000
1.5
600000
0.625
250000
275000
75000

0.49
0.76
0.42
0.51
0.24
0.58
88%
20%
20%
0.59
0.42
0.88
1077787.00 408001.00 314286.00

25000
50000
25000
100000

Selling Price per unit ($)

Variable Cost per unit ($)
Contribution Margin per unit ($)
Income Before Tax ($)
Total Fixed Cost ($)
No. of Units to Be produced

1.158
0.56
0.59
200000
840000
1414595

c)
Sales at Full capacity (units)
actual sales volume (units)
unit sale price($)
Total sales revenue($)
Variable cost per unit($)
Total variable cost($)

Aggregrate
2000000
1750000
1.158
2026667
0.61
1072866.67

c)

Profit ($)
Dividends ($)
Income After Tax ($)
Selling Price per unit ($)
Variable Cost per unit ($)
Contribution Margin per unit ($)
Income Before Tax ($)
Total Fixed Cost ($)
No. of Units to Be produced

25000
50000
75000
1.158
0.61
0.55
150000
790000
1449465

d)

Profit ($)
Dividends ($)
Extra Dividends ($)
Income After Tax ($)
Selling Price per unit ($)
Variable Cost per unit ($)
Contribution Margin per unit ($)
Income Before Tax ($)
Total Fixed Cost ($)
No. of Units to Be produced

25000
50000
25000
100000
1.158
0.61
0.55
200000
840000
1541204

Q3
Yes break even analysis can help in deciding if company should
alter the existing product emphasis by checking which all
products are giving least contribution margin to cover their
fixed cost

Product Lines
B

400000
1.67
666667
0.264
105600

400000
1.5
600000
0.641667
256666.7

No. of units produced of C

Sales Price ($)
Sales Revenue ($)
Variable cost ($)
Total Variable Cost ($)
Contribution Margin ($)
Fixed Cost ($)
Investment that can be done ($)

950000
0.8
760000
0.25
190000
0.55
195000
375000

Q4
The break even analysis helps understand and formulate the
relationship between costs (fixed and variable), output and
profit. The technique can be used to set sales targets and/or
prices to generate target profits. In a wide product range, the
analysis helps to find out which products are performing well
and which are leading to losses

roduct Lines
C
500000
0.4
200000
0.25
125000
75000
0
0.625
0.38
25%
0.15
500000

roduct Lines
C
950000
0.8
760000
0.25
237500
195000
327500
0.32
0.68
48%
0.55
354546.00

roduct Lines
C
950000
0.8
760000
0.748
710600