BAX Plc. produces and sells a specialised computer software programs. Estimated unit data for next year are as follows:             Per unit                      £ £ Selling price                600 Variable costs:     Labour                       200   Materials                      40   Variable overheads.                          10 250 Profit   350   Anticipated fixed costs for the year are £80,000 for administration and £60000 for selling and distribution. Estimated sales for the year are 640 computer soft wares.   You have been recently hired as graduate business analyst and for business decision-making purposes in BAX Plc.  You are tasked to:   calculate Breakeven point in terms of number of software programs sold. calculate The margin of safety as a percentage of estimated sales. The company’s target profit for the year is £56000. Discuss whether the estimated sales volume will be sufficient to achieve this target.

BAX Plc. produces and sells a specialised computer software programs. Estimated unit data for next year are as follows:

           

Per unit                     

£

£

Selling price             

 

600

Variable costs:

 

 

Labour                      

200

 

Materials                     

40

 

Variable overheads.                         

10

250

Profit

 

350

 

Anticipated fixed costs for the year are £80,000 for administration and £60000 for selling and distribution. Estimated sales for the year are 640 computer soft wares.

 

You have been recently hired as graduate business analyst and for business decision-making purposes in BAX Plc.  You are tasked to:

 

  1. calculate Breakeven point in terms of number of software programs sold.
  2. calculate The margin of safety as a percentage of estimated sales. The company’s target profit for the year is £56000.
  3. Discuss whether the estimated sales volume will be sufficient to achieve this target.                                                                                    please send the anwers within 20 mins its very urgent 
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