Calculate the sales volume to achieve target profit

Assignment Help Cost Accounting
Reference no: EM132633758

PLC Ltd makes and sells a single product, Product P. It is currently producing 112,000 units per month, and is operating at 80% of full capacity. Total monthly costs at the current level of capacity are £ 611,000. At 100% capacity, total monthly costs would be £ 695,000. Fixed costs would be the same per month at all levels of capacity between 80% and 100%. At the normal selling price for Product P, the contribution/sales ratio is 60%.

Problem 1: Calculate the following:

1. Breakeven Sales Value

2. Sales Volume to achieve Target Profit equal to Fixed Costs.

Reference no: EM132633758

Questions Cloud

Make the journal entry to record the vacation : Eight Factory workers and a supervisor comprise a team, Make the journal entry to record the vacation and bonus pay applicable to one week's production.
Describe the photographic technology : Select a historical photo that predates 1854, include the link to the website where you located the image, and embed the
Give a self-explanatory report to the general manager : Give a self-explanatory report to the General Manager as per the request made. PAKEL Tool Company is located in one of the Multi-Facility Economic Zone
How much higher skyscrapers of the future will rise : How much higher skyscrapers of the future will rise than the present world marvel, the Sears Tower, is unknown.
Calculate the sales volume to achieve target profit : Calculate the Sales Volume to achieve Target Profit equal to Fixed Costs. PLC Ltd makes and sells a single product, Product P. It is currently producing 112,000
Find difference between the statistical significance : What is the difference between the statistical significance of your results and the importance of your results?
Write a a biography about an interesting person : A biography about an interesting person like an artist, an actor or actress, a singer, a baseball player, a writer, or a political leader
Compute the quantity of units breakeven to reach targeted : Compute the quantity of units breakeven to reach targeted net Income before taxes. Sole Company manufactures running shoes. The selling price per pair of shoes
HI6008 Reflective Journal Assignment : HI6008 Business Research Project Assignment Help and Solution - Holmes Institute, Australia - Assessment Writing Service - Business Research Design

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd