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(Solved): 12. Hansraj and Patel are engaged in providing and marketing a standard advice service. Summarised r ...



12. Hansraj and Patel are engaged in providing and marketing a standard advice service. Summarised results for the past two months reveal the following: October November Sales (in units of service) 200 300 Total Sales Revenue (£) 5,000 7,500 Total Costs (£) (4,000) (5,300) Operating Profit (£) 1,000 2,200 Over the two months, there had been no changes in unit selling prices of services, or in the costs. What is the Break?Even Point (in units of service) for Hansraj and Patel (answer in nearest whole units)?

A) 110 units B) 88 units C) 100 units D) 117 units



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ANSWER CORRECT ANSWER IS OPTION D)117 UNIT BREAK EVEN POINT (IN UNIT OF SERVICE )=117UNIT Here the question is asked to find Break even point. The equation to find Break even point =Fixed cost/Contribution margin per unit of service Contribution marg
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