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Helky draws a break-even chart.

To represent sales, he draws a straight line through the origin and the point (10,000 units, £66,000).

Calculate:

(a) the selling price per unit of product

(b) the income from sales of 12,000 units.

To represent total manufacturing costs,Helky draws a line through the points (0 units, £20,000) and (10,000 units, £70,000).

Calculate:

(c) the variable cost per unit

(d) the contribution per unit

(e) the total cost of manufacturing 12,000 units

Operation Management, Management Studies

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