May Limited manufactures expresso machines. Each machine has a wholesale price of £350. Variable costs of manufacture are £112 per machine. Because of increased competition, the sales director has reduced the level of sales that the company can realistically expect to make. The actual sales level in 2018 was 2650 machines, but the budget for 2019 is only 2150 machines. Fixed costs for the year are budgeted at £660 000.
Required:
- Calculate the total contribution that can be expected at a sales level of 2150 machines.
- Calculate the break-even point in units (to nearest whole unit).
- Calculate the break-even point in units if the selling price were to be increased by 15% (to nearest whole unit)
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