(a) From the following information you are required to construct:
(i) a break-even chart, showing the break-even point and the margin of safety;
(ii) a chart displaying the contribution level and the profit level;
(iii) a profit–volume chart.
Sales 6000 units at Br.12 per unit = Br.72 000
Variable costs 6000 units at Br.7 per unit = Br.42 000
Fixed costs = Br.20 000
(b) State the purposes of each of the three charts in (a) above.
(c) Outline the limitations of break-even analysis.
(d) What are the advantages of graphical presentation of financial data to executives?