Monthly Financial Data and Break-Even Analysis
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Monthly Financial Data
| 900 | 1000 | 1250 | 1400 | 1500 | 750 | |
|---|---|---|---|---|---|---|
| July | August | September | October | November | December | |
| Sales per Unit (£50) | 45000 | 50000 | 62500 | 70000 | 75000 | 37500 |
| Purchases per Unit (£24) | 21600 | 24000 | 30000 | 33600 | 36000 | 18000 |
Receipts | ||||||
| Opening Balance | 10000 | (1650) | 2100 | 5650 | 12500 | 21250 |
| Cost of Sales (40%) | 18000 | 20000 | 25000 | 28000 | 30000 | 15000 |
| Credit Sales (60%) | 27000 | 30000 | 37500 | 42000 | 45000 | |
| Total Receipts | 28000 | 45350 | 57100 | 71150 | 84500 | 81250 |
Payments | ||||||
| Purchases Cash (50%) | 10800 | 12000 | 15000 | 16800 | 18000 | 9000 |
| Purchases Credit (50%) | 10800 | 12000 | 15000 | 16800 | 18000 | |
| Direct Labour per Unit (£13) | 11700 | 13000 | 16250 | 18200 | 19500 | 9750 |
| Variable Overheads per Unit (£3) | 2700 | 3000 | 3750 | 4200 | 4500 | 2250 |
| Selling and Distribution Costs | 800 | 800 | 800 | 800 | 800 | 800 |
| Supervisor Salary | 1800 | 1800 | 1800 | 1800 | 1800 | 1800 |
| Fixed Production Costs | 1850 | 1850 | 1850 | 1850 | 1850 | 1850 |
| Total Payments | 29650 | 43250 | 51450 | 58650 | 63250 | 43450 |
| Closing Balance | (1650) | 2100 | 5650 | 12500 | 21250 | 37800 |
Break-Even Analysis
Total Fixed Costs: 800 + 1800 + 2150 = 4750
Note: Components from table are Selling and Distribution (800), Supervisor Salary (1800), and Fixed Production Costs (1850). The source calculation uses 2150 for the third component.
Selling Price (SP): £50 per unit
Variable Cost per Unit (VC): Direct Labour (£13) + Variable Overheads (£3) + Purchases (£24) = £40
Contribution Margin per Unit: SP - VC = £50 - £40 = £10
Break-Even Point (BEP) in Units: Total Fixed Costs / Contribution Margin per Unit = 4750 / 10 = 475 units
Break-Even Sales Revenue: BEP in Units * SP = 475 units * £50 = £23750
Break-Even Point Over 6 Months
Total BEP Units over 6 months = BEP in Units * 6 months = 475 units * 6 = 2850 units
Sales Revenue for 6-month BEP = Total BEP Units over 6 months * SP = 2850 units * £50 = £142500