Finch Fletcher Limited manufactures trumpets. Each trumpet sells for £350, and has variable costs of manufacture of £120. The company can produce no more than 1200 in a year. In the year ending 31...

Finch Fletcher Limited manufactures trumpets. Each trumpet sells for £350, and has variable costs of manufacture of £120. The company can produce no more than 1200 in a year. In the year ending 31 March 2013 the company’s directors expect to incur fixed costs of £172 000.

You are required to:

i) Draw a break-even chart recording:

a. fixed costs

b. total costs

c. total revenue.

ii) From the chart estimate the break-even point in units and in sales value for Finch Fletcher Limited for the year ending 31 March 2013.

iii) Use the break-even formula to calculate the break-even point in units and in sales value for Finch Fletcher Limited for the year ending 31 March 2013.