BEC-22806 Case 3 calculations and final answers

Case 3 – BEC-22806
Calculations and answers
Problem 3.1
1a

Volume Price Total cost

40.000 430,- 17.200.000

50.000 388,- 19.400.000

Difference 10.000 2.200.000

Variable cost 2.200.000/10.000= €220,-

Variable cost at 40.0000= 40.000*220= €8.800.000

Fixed cost at 40.000 = total cost – variable cost = €8.400.000



1b

Volume Price Total cost

Revenue at 65.000 65.000 420 65.000*420 = 27.300.000

Variable cost 220 65.000*220 = 14.300.000

Fixed cost 8.400.000



Profit €4.600.000



1c

Contribution = price – variable cost = 420 – 220 = 200

BEA at fixed cost / contribution = 8.400. = 42.000



1d

Current sales 65.000

BEA 42.000

Margin of safety (65.000-42.000)/65.000 = 35%