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The summary results of Donlon Ltd are as follows:
Product
A
B
C
Total
Shs.000
Sales revenue
300
200
100
600
Variable costs
150
120
70
340
Contribution
260
Fixed costs
Net profit
160
Contribution sales ratio
0.5
0.4
0.3
0.433
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
Break-even point
Margin of safety
Overall contribution sales ratio
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