Podcaster University Press produces and sells a text book which provides comprehensive coverage of International Financial Reporting Standards. The book generates a contribution of £30 and each book is allocated a fixed overhead charge of £10 to give a profit of £20 on each book produced and sold. Fixed overheads for the book total up to £27,000 per annum. Podcaster University Press is experiencing a fall in demand for this book and expected sales have fallen from 2,700 to 1,200 books. Using sensitivity analysis, what is the profit or loss that Podcaster University Press will make from selling 1,200 copies of this book?

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The Answer of Podcaster University Press produces and sells a text book which provides comprehensive coverage of International Financial Reporting Standards. The book generates a contribution of £30 and each book is allocated a fixed overhead charge of £10 to give a profit of £20 on each book produced and sold. Fixed overheads for the book total up to £27,000 per annum. Podcaster University Press is experiencing a fall in demand for this book and expected sales have fallen from 2,700 to 1,200 books. Using sensitivity analysis, what is the profit or loss that Podcaster University Press will make from selling 1,200 copies of this book?

Podcaster University Press Produces and Sells a Text Book Which