Relevant costs marginal costing, and short-term decision making
. Bunlop Limited produces tennis balls. All production is undertaken by computer-controlled machinery. Production is sold in tubes of 4 balls. Each tube of 4 balls contains direct materials costing £2.00 and incurs variable overheads of £0.50. Each tube of 4 tennis balls is sold for £4.00. Bunlop Limited's fixed costs total up to £75,000. What is Bunlop Limited's break-even point in sales units?

. Showit produces and sells overhead projectors to schools and colleges. Each overhead projector uses £25 of materials and requires 3 hours of labour at £10 per hour. Each overhead projector sells for £75. Showit has fixed overheads of £200,000. What is Showit's break-even point in sales units?

. James is a small farmer who has just started growing potatoes. He has devoted 20 acres of his farm to potatoes. He is wondering how many tonnes of potatoes he will have to sell to break-even. His potatoes sell for £100 a tonne. Each acre produces 20 tonnes of potatoes. His variable costs per acre are £400 in wages, £70 in seed potatoes, £50 in fertiliser and £80 for pesticides. The fixed costs of the land used to grow the potatoes are £21,000. What is James' break-even point in tonnes of potatoes?

. Extraction plc mines and sells coal from its Big Hole open cast coal mine. The selling price per tonne is £70. Variable costs per tonne mined are £25 and Extraction plc pays a £3 royalty per tonne extracted to the landowner and a £2 environmental levy on each tonne sold. Annual fixed costs of operating the mine total up to £1,134,000. What is the break-even point in tonnes of Extraction plc's Big Hole open cast coal mine?