Good evening. Please help me with this question from my textbook. A. Calculate the break even point for peason and litt for 2019 and 2020.B. Compare the results of the 2019 and 2020 break even points and explain why there might be a difference Consider the information provided below as well as the financial statements and answer thequestions that follow.Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glasswine bottles for the Blue Valley Beer Co.20192020Sales price per unitR15R19Variable cost per unitRGR7Fixed cost (FC) per annumR650 000R 855 500Fixed cost per unitR3R4Current assetsR450600R560 700Current liabilitiesR510000R780 000Retained profitR21 809R17600Net SalesR2 900 320R3100 100Cost of salesR390 000R475000

Breakeven point is the point where there is no profit no loss.

Answered: A. Calculate the break even point for…

A. Calculate the break even point for peason and litt for 2019 and 2020. B. Compare the results of the 2019 and 2020 break even points and explain why there might be a difference

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Good evening.

Please help me with this question from my textbook.

A. Calculate the break even point for peason and litt for 2019 and 2020.

B. Compare the results of the 2019 and 2020 break even points and explain why there might be a difference

Consider the information provided below as well as the financial statements and answer the
questions that follow.
Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass
wine bottles for the Blue Valley Beer Co.
2019
2020
Sales price per unit
R15
R19
Variable cost per unit
RG
R7
Fixed cost (FC) per annum
R650 000
R 855 500
Fixed cost per unit
R3
R4
Current assets
R450600
R560 700
Current liabilities
R510000
R780 000
Retained profit
R21 809
R17600
Net Sales
R2 900 320
R3100 100
Cost of sales
R390 000
R475000

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