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QUESTION

The summary results of Donlon Ltd are as follows: Product A B C Total Shs.000 Shs.000 Shs.000 Shs.

Required

Prepare a profit volume graph which shows the overall results for Donlon Ltd

Prepare an amended profit curve where the market forces have led to a switch of Shs. 200,000 of sales from product A to product C

Prepare a summary which shows the value of each of the following for both the original results and the amended results

Net profit

Break-even point

Margin of safety

Overall contribution sales ratio

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