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