What would have been his new profit for the year

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Question - Chan had considered spending an additional £14,400 on marketing in 2020. He predicted that such an additional investment would have increased the sales and production volume in the year to 138,000 units at a better selling price of £3.68. He also predicted there would have been no other changes to his fixed costs for the year nor any changes to the variable cost per unit.

i. If his predictions had proved correct, what would have been his new profit for the year?

ii. If his predictions had proved correct, what would have been his new breakeven point, in units, for the year?

Reference no: EM133138678

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