A. The variable cost per unit is <u>K6.</u>
B. The fixed cost is K40,000 (K136,000 - K96,000)
C. i) The fixed cost of K40,000 will have 2,500 units (K40,000/K16).
ii) Variable cost of K108,000 will have 6,750 units (K108,000/K16).
iii) Total Cost of K148,000 will have 9,250 units (K148,000/K16).
D. The contribution sales ratio = 0.625 (K10/K16)
E. Break-even revenue = Total variable costs + Total fixed costs
= K64,000 (K40,000/0.625)
F. The net profit for the planned sales of 18,000 units is K140,000 (K288,000 - K108,000 - K40,000).
<h3>What is break-even analysis?</h3>
Break-even analysis is the determination of the units or quantities at which a good or service will be produced so that the company can cover its costs without any loss.
Thus, break-even analysis evaluates the unit at which the company will not incur any loss or sustain a profit. At the break-even point, the revenue equals the costs.
<h3>Data and Calculations:</h3>
Selling price per unit = K16
Monthly Production Capacity = 19,000 units
Planned sales = 18,000 units
Production Capacities Differences
Planned production 16,000 18,000 2,000
Monthly costs K136,000 K148,000 K12,000
Total variable costs K96,000 K108,000
Fixed costs K40,000 K40,000 (K148,000 - K108,000)
Using the high-low method of cost determination, the Variable cost per unit = K6 (K12,000/2,000).
Learn more about calculating break-even analysis at brainly.com/question/21137380
