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    Oh so thats 5 marks then. Great.
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    What did everyone get for advantages of break-even analysis?
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    How did people define total contribution?


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    Just calculation.
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    Is the paper out of 80?


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    (Original post by Tarmu)
    What did everyone get for advantages of break-even analysis?
    What question was that?
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    (Original post by Frostyjoe)
    What question was that?
    Think it might have been 'what is meant by break even analysis' I'm not sure, though. I was in a rush
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    Really I can't remember doing that one. Oh god. I had to rush the last question.
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    Advantages of an income budget? I defined it first. (2-3 marks: a financial plan covering future revenue). Then I said it may lead to decreased motivation following after you've hit the targets which decreases work efficiency and decreases chances of more than the 'expected / targeted revenue of £300,000'. After that I said that an income budget only covers revenue and does not account for costs. Therefore you cannot predict profit etc. Also mentioned about adverse/favourable variances and applied to case study as much as I could
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    Break even output = fixed costs / (selling price - variable costs per unit).

    You divide the fixed costs by the contribution per unit.

    So I think it was 132,000 for fixed costs.

    Vcpu should be total variable costs / units sold

    And the price was 2.50.

    I got 110,000


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    I only cannot remember half the questions. I think for that one I just said what an Income budget was and then went on and gave like 4 or 5 disadvantages. (Linking it up to him).
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    (Original post by dannyboyrises)
    Break even output = fixed costs / (selling price - variable costs per unit).

    You divide the fixed costs by the contribution per unit.

    So I think it was 132,000 for fixed costs.

    Vcpu should be total variable costs / units sold

    And the price was 2.50.

    I got 110,000


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    I did exactly that and got 101,438 something or other. Either way I'll get all but 1 mark for the final answer.
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    (Original post by samboJ)
    I did exactly that and got 101,438 something or other. Either way I'll get all but 1 mark for the final answer.
    132,000 / 1.30 = 101,538.4615 -> Just done it on my calculator.

    Therefore answer is 101,539. You round up because you have not yet broken even if you sell 101,538. You'd still be making a loss. (Albeit miniscule).
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    (Original post by kky_l)
    How did people define total contribution?


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    I said it was: (total revenue - total variable costs)
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    Well I got 101,538. So yea I think thats right. But I don't think theres any point in tapering your heads about what you got right and wrong because we have a long time to wait and you never know with those essays.
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    (Original post by samboJ)
    I said it was: (total revenue - total variable costs)
    I think you got it mixed up between gross profit.

    I put:

    contribution per unit x number of items sold
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    (Original post by Tarmu)
    I think you got it mixed up between gross profit.

    I put:

    contribution per unit x number of items sold
    What you have said is correct but you have used contribution in your answer and therefore I don't think you'll get marks.
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    (Original post by samboJ)
    What you have said is correct but you have used contribution in your answer and therefore I don't think you'll get marks.
    Nope, my teacher said that was fine.
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    (Original post by Tarmu)
    Nope, my teacher said that was fine.
    Fair enough. You are right.
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    Well I have the book here now and Contribution = Total Revenue - Total Variable costs and thats what I wrote too.

    I hope we don't have to write it in words..
 
 
 
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