Calculate costs using appropriate technique of cost analysis

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Reference no: EM132796323

Tennis England Ltd- Annual total sales is 62 million. Opening inventory is 270,000. Closing inventory is $125,000. Variable cost of production is $400,000. Other variable costs are $45,000 Administration Department, 685,000 Sales Department, $65,000 Finance Department. Fixed costs amount to f85,000 per year. Fixed overhead absorbed each year is $70,000 but this is over-absorbed by $20,000.

In respect to cash flows the anticipated flows in the year were as follows:

Cash generated from operations E245,000,

Interest paid $8,000,

Tax paid $21,000,

Dividends paid $45,000,

Purchase of property $55,000,

Decrease in long-term borrowings $35,000.

Cash and cash equivalents at the start of the year was 120,000 and at the end of the year is $170,000.

Problem 1: Calculate costs using appropriate techniques of cost analysis using marginal and absorption costs

Reference no: EM132796323

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