Page 83 - 5.2 i. Manac Costing ITC Summarised Notes
P. 83
ITC EXAM PREP
Overview
Impact of factors
• All other factors remaining the same:
• An increase in selling price per unit will increase the contribution
per unit and decrease the break-even sales required.
• An increase in variable cost per unit will decrease the contribution
per unit and increase the break-even sales required.
• An increase in total fixed cost will increase the sales required to
break-even.
• Generally, you will first have to determine the nature of the costs
before proceeding with the break-even calculation.
83
