Question 1 15 marksPart ANavan Ltd manufactures a single pro…
Question 1 15 marksPart ANavan Ltd manufactures a single product in a factory that is capable of producing 500,000 units per year. A budgeted Income Statement for the current year is shown below.$$Sales (500,000 units)5,000,000Less Cost of Goods SoldVariable1,500,000Fixed1,600,0003,100,000Gross Profit1,900,000Less Selling and Administrative expensesVariable500,000Fixed200,000700,000Net Profit1,200,000Required:a. Income Statement showing contribution margin? (3 marks)b. Calculate the break even point in units? (3 marks)c. And in sales revenue? (3 marks) P0037496
