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Answer:
Explanation:
Profits are the sales made after the break-even point.
The break-even point = Fixed costs/ contribution margin per unit
Fixed costs= £200,000
Contributions margin per unit = Selling price - variable cost
= £45 - £5
=£40
Break even point = £200,000/£40
Break-even point=5000 units
At break-even, profit or loss is equal to zero
At 1000 units, the loss will be units x selling price
=1000 x $45
=$45,000