How much sales needed to be increased to justify additional

Assignment Help Cost Accounting
Reference no: EM132610078

produces a single product that sells for RM500. Cost per unit: direct material RM70, direct labour cost RM50, variable packaging cost RM30, variable marketing RM20 and variable selling costs RM30. Fixed costs are RM300,000 per annum.

Question a) Calculate contribution margin ratio.

Question b) Calculate break even in unit and in sales.

Question c) Calculate number of units to be sold to achieve a profit of RM400,000 per annum.

Question d) Calculate number of units to be sold to achieve a profit of RM500,000 per annum (after tax) with a tax rate of 20% (in units).

Question e) Suppose management believes that a RM90,000 increase in the monthly advertising expense will result in a considerable increase in sales. By how much sales needed to be increased to justify this additional expenditure?

Reference no: EM132610078

Questions Cloud

What characteristics of the species makes : Conduct a research on an invasive species such as the Northern Pacific sea star.
What is the contribution margin percentage : What is the contribution margin percentage. Jazz corporation produces and sells a single product. The selling price is 25.00 and the variable cost is 15.00
Calculate the target ending finished goods inventory : Each month is sufficient to support 30% of the following month's forecast sales. How do we calculate the target ending finished goods inventory
Describe possible compromise to the solution for future case : Based on this article or other topic research, explain whether you agree with the FBI or you agree with Apple. Justify your stance with supporting information.
How much sales needed to be increased to justify additional : Monthly advertising expense will result in a considerable increase in sales. By how much sales needed to be increased to justify this additional expenditure?
Explain impact new cryptographic security architecture : Describe and explain the impact the new cryptographic security architecture will have on the current security features
Define what devices might not be allow in certain facilities : Some businesses require employees to use clear or see-through backpacks when carrying personal items. What other devices might not be allowed in certain.
Make schedule of collection and payments for the month : Bersatu Kekal Bhd is an engineering company. Make schedule of collection and payments for the month of January, February and March 2019.
Describe the various methods of coding : Review various methods of coding at Methods Map Coding Coding Methods Map. Sage Research Methods. Select one method of coding for this assignment.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Base your answer on the data from paxton inc for marchnbsp

base your answer on the data from paxton inc. for march.nbsp paxton uses the average costing method.paxton inc. for

  Describe ethical challenges faced by organizations operating

Describe the ethical challenges faced by organizations operating globally. Aligning Stockholder and Management Interests/TVM/Markets

  Determine the price variance and quantity variance

Determine the price variance, quantity variance, and total direct materials cost variance and determine the rate variance, time variance, and total direct labor cost variance.

  Prepare the cost of production report for june

Prepare the Cost of Production Report for June to determine the cost per unit, the cost allocated to units completed and the costs allocated

  The assets and liabilities of toronto service inc as of

the assets and liabilities of toronto service inc. as of december 31 2008 and revenue and expenses for the year ended

  Prepare a classified balance sheet - plevin company

Prepare an income statement and an owner's equity statement for the year. Plevin did not make any capital investments during the year and prepare a classified balance sheet at July 31.

  Discuss how the cost of each unit manufactured is

Discuss how the cost of each unit manufactured is determined and then also calculate its value? Determine the amount of over or under applied factory overhead?

  What are annual cash flows from operations

What are Annual Cash Flows from Operations and Net Present Value (NPV)? The company uses straight-line depreciation for all capital assets.

  Electro company manufactures an innovative automobile

Electro Company manufactures an innovative automobile transmission for electric cars.

  Do you agree with the proponents of the exclusion

To date, Congress has concluded that the benefits gained by the states and municipalities and their residents, such as access to capital and the creation of jobs to construct and maintain critical infrastructure, outweigh any damages to our progre..

  Calculate the cost of job completed

Calculate the cost of each job completed. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,125.)

  Compute for the cost of inventory value

Using the moving average method compute for the cost of Inventory Value. Using FIFO method, compute for the cost of Materials Issued

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