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  3. 07. rennes ltd provides a single standard service.

07. Rennes Ltd provides a single standard service. The business's results for the past two...

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Accounting

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07. Rennes Ltd provides a single standard service. The business's results for the past two months are as follows: April 500 May 620 Sales (units of the service) Sales revenue (E) Cost () Operating profit (E) 25,000 15.000) 10,000 31,000 (16200) 14,800 There were no changes, of any description, in selling prices or costs over the two months. Required: 6a. Calculate sales price per unit. (1 points) 6b. Given the total cost and activity levels in terms of sales units per each month, identify variable and fixed cost using high-low method. (3 points) 6c. What is the break-even point for the business's activities? (1 points) 6d. What benefit will it be for the management of Rennes Ltd to know the business's break-even point? (1 points) 6e. Calculate contribution margin ratio per unit and briefly explain what it means for Ge. Caloulate contribution margin ratio per unit and briety explain what it means for Rennes Ltd (2 points) 6d. Calculate margin of safety for each month in units as well as percentage terms and briefly explain what it means for Rennes Ltd (2 points) Total (10 marks)

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