Set out below are the sales and net profits of a business

Assignment Help Financial Accounting
Reference no: EM13378157

Set out below are the sales and net profits of a business for two years, 2010 and 2011:

 

2010

£

2011

£

Sales revenue

530,000

730,000

Operating profit

66,000

114,000

The fixed costs in 2011 had increased by £16,000 over the previous year but the percentage contribution remained the same.

Required:

a- Calculate the sales revenue level at which the business broke even in 2011.

b- Calculate the sales revenue that would have been required to generate an operating profit of £240,000 in 2011.

c- Illustrate your answer to (b) on:

1- a chart displaying the contribution level and the profit level;

2- a profit-volume chart.

d- If a new product does not require any new fixed costs because the company utilizes the existing capacity of facilities and personnel, what would be the breakeven point?

Reference no: EM13378157

Questions Cloud

In a population y100 and y43 use the central limit theorem : in a population y100 and y43. use the central limit theorem to answer the following questionsa. in a random sample of
Western flyers received its bank statement for the month of : western flyers received its bank statement for the month of july with an ending balance of 11065.00. western flyers
Aggregate labor market for bampb professionalsyafklfor 1 : aggregate labor market for bampb professionalsyafklfor 1 amp 2 find equilibrium wage equilibrium nd equilibrium ns1.
The production department has been investigating possible : the production department has been investigating possible ways to trim total production costs. one possibility
Set out below are the sales and net profits of a business : set out below are the sales and net profits of a business for two years 2010 and 2011nbsp2010pound2011poundsales
A plot crowding out for the following situations on a graph : a plot crowding out for the following situations on a graph and explain why you get the resultsi perfectly inelastic id
On january 1 abc corporation a us based manufacturer buys : on january 1 abc corporation a u.s. based manufacturer buys 10 million yen worth of inventory from sa corporation a
Suppose the price of housing stays at 2 and the price of : suppose the price of housing stays at 2 and the price of food stays at 10. what will happen to her budget constraint if
Suppose the price of housing increases to 3 but the price : suppose the price of housing increases to 3 but the price of food stays at 10.rewrite janes budget constraint and draw

Reviews

Write a Review

Financial Accounting Questions & Answers

  Illustrate total cost to be accounted

During the month, the cost of units transferred out from the dept. was $460,000. In the departments cost reconciliation report for April, the total cost to be accounted for would be?

  Should country record on the bond retirement

Computation of loss and gain on retirement of bonds -  Country reacquired all of these bonds at 96 on June 30, 2007, and retired them. Ignoring income taxes, how much gain/loss should country record on the bond retirement?

  How are standards used to develop both static and flexible

How are standards used to develop both the static and flexible budget as well as in the calculation of variances?

  Elucidate a business unit performance

Is it ethical to choose a transfer price for tax purposes that is different from the transfer price used to elucidate a business unit's performance?

  Effect of capital structure on companies value per share

Effect of capital structure on companies value per share - market-value balance sheets, assuming the capital structure before recapitalization. Please complete the worksheet for the recapitalization alternative.

  Prepare the journal entry to record the impairment

Prepare the journal entry to record the impairment at December 31, 2010 and prepare any journal entries for the equipment at December 31, 2011.

  Explain rental revenues and rental expenses

In addition to the above, Mr Simpson drove in 2013 his personal automobile, a 2010 Chevrolet Caprice, in attending to the rental property a total of 400 miles (33.33 miles per month). Mr Simpson has always used the Standard Mileage Method (Automat..

  What is meant by organisational legitimacy

What relevance does the social contract have with respect to the legitimacy of an organisation? What is meant by organisational legitimacy?

  How much would the crow manufacturing total income

Based on Crow Manufacturing's data in Exercise 24-20, assume that a transfer price of $110 has been established and that 40,000 units of materials are transferred, with no reduction in the Materials Division's current sales. How much would the Cr..

  Briefly describe when petty cash fund should be replenished

Briefly describe when petty cash fund should be replenished. Because there is cash on hand, is there a need to replenish the fund at year end on December 31? Explain.

  How much is balance of retained earnings in current year

Prepare a summary of information with appropriate cross referencing between sources and paraphrase and appropriately reference source material (Harvard style referencing).

  Terry marks is a well-known architect he wants to start his

terry marks is a well-known architect. he wants to start his own business and convinces rob norris his cousin and a

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