Study the table below and fill in the figures represented by the letters A, B, C, D and E - Leaving Cert Business - Question 6 - 2018

For B, we need to analyze the Variable Costs for 50,000 units, which are already given as €360,000. Hence,

$$B = 360,000$$

C represents the Total Costs for 50,000 units. The Total Costs consist of Fixed and Variable Costs. Therefore:

Total Costs = Fixed Costs + Variable Costs

Given:

• Fixed Costs (at any sales level) = €360,000
• Variable Costs (for 50,000 units) = €600,000

Thus:

$$C = 360,000 + 600,000 = 960,000$$

D represents the Total Revenue for 30,000 units. To calculate Total Revenue:

Total Revenue = Sales (units) × Selling Price (per unit)

Given:

• Sales = 30,000 units
• Selling Price = €20 per unit

Thus:

$$D = 30,000 imes 20 = 600,000$$

E is the Profit/Loss at 0 sales units. At this level, since Total Revenue is €0 and Total Costs are €360,000, Profit/Loss can be ascertained using:

Profit/Loss = Total Revenue - Total Costs

Thus:

$$E = 0 - 360,000 = -360,000$$

Here, E indicates a loss of €360,000.