Stephene 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, Thomas 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