What are the benefits and limitations of a football factory developing a budget for decision making?Discuss – Essaylink

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You are given the following data for the coming year of a football factory:

Fixed expenses £50,000 Variable expenses per unit£45 Selling price per unit£75

Required:

a. Draw a break-evenchart showing the break-even point. (10marks)

b. Whittier plans to sell 1,000 mowers at £450 each in the coming year. Whittier has unit variable cost of £325 and fixed cost of £45,000.

Required:

-Calculated break even in units. (15 marks)

c. What are the benefits and limitations of a football factory developing a budget for decision making?

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