Answer to Question #152508 in Accounting for kris

Question

Suppose, you want to commence a small business with your friends during Aimst Food Carnival to collect fund for SGFS leisure trip to Redang Island. Determine how many quantity in units (Q) and value in Ringgit (RM) needed to sell in order to achieve the breakeven and targeted profit by using Cost Volume Profit analysis learned during your lecture.

You will use CVP analysis to analyze a business of your choice to enable a prospective investor to decide if your business is worth investing in.


a) Identify and briefly explain the Fixed and Variable cost involved in order to run
your small business. (10 marks)

b) Your analysis must include the 3 methods for the calculation of break-even point
and targeted profit (in quantity and RM Value) as below:

i) The Equation method
ii) The Contribution margin method
iii) The Graphical method (use graph paper)

Answer 1

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