How can management achieve their target profit

Assignment Help Accounting Basics

Reference no: EM132971870

Question: Assume a firm has Br. 1,000,000 invested in its plant and sets a goal of 15% annual return on investment. Fixed costs in the factory presently amount to Br. 400,000 per year and variable costs amount to Br. 15 per unit produced. In the past year the firm produced and sold 50,000 units at Br. 25 each and earned a profit of Br. 100,000. How can management achieve their target profit goal by varying different variables like fixed costs, variable costs, quantity sold or increasing the selling price per unit.

Reference no: EM132971870

Questions Cloud

Six vintages of rade restrictions in business world : What are the six vintages of rade restrictions in business world

What is the august 31st inventory balance of work in process : What is the August 31st inventory balance of work in process - Provide three examples of manufacturing overhead

Individual style and ethical perspectives influence : Discuss how individual style and ethical perspectives influence the management of conflict or group dynamics. Consider how individuals collectively create compl

Advantages of the organizational structures : Think of a company or organization you're familiar with, perhaps one you've worked for or even a place of worship or school.

How can management achieve their target profit : How can management achieve their target profit goal by varying different variables like fixed costs, variable costs, quantity sold or increasing the selling

Speakers of nonstandard dialects : 1.Speakers of nonstandard dialects of English are

Compute the basic earnings per share : Compute the Basic Earnings Per Share for 2017 as per the IAS 33 - For the entire financial year ABC Company limited had 10,000 preference shares of Tk

Opportunity faced by health foods : What are some distinct marketing alternatives (approaches that are very different from one another) that might be pursued by Healthy Foods

Discuss the powers of the liquidator : Discuss the powers of the liquidator in winding up a company in Fiji. Explain whether these powers are the same or different in the circumstances identified

User Account

All Pages