Solution-State five limitations of break-even analysis

State five limitations of break-even analysis

Assignment Help Cost Accounting

Reference no: EM132560627

XYZ Company manufactures a product called "PERMA". Pertinent cost and revenue data relating to the manufacture of this product is given below:

Selling price per unit 66
Variable production cost per unit 44
Variable selling cost per unit 4

Fixed production cost (total) Shs.200,000
Fixed selling and administrative cost (total) Shs.99,000

Required

Question a) Calculate the break-even sales level in shillings;

Question b) Suppose the company desires to make a profit of shs.195,000, what should be the output in units?

Question c) A new machine, which is more efficient, is installed. This machine increases the fixed production cost by 20% but reduces the variable production cost per unit by 30%. What is the new break-even point in sales revenue?

Question d) State five limitations of break-even analysis.

Reference no: EM132560627

Questions Cloud

Calculate the earnings of x and y under rowan plan : Standard time per piece 12 hours. time worked x =9 hours, y= 8 hours.workers hourly rate= 0.50. Calculate the earnings of X and Y under Rowan plan

How to determine the total wage including the bonus payable : How to Determine the total wage including the bonus payable under halsey plan when outputs are 5, 8, 12 and 15 units per day. Calculate the labour cost per unit

Determine the total wages including the bonus payable : Determine the total wages including the bonus payable under halsey plan when outputs are 5, 8, 12 and 15 units per day. also calculate the labour cost per unit.

Make the journal entry adjusted : Make the Journal Entry adjusted. Office supplies on hand at 30th May is $341 incl. GST. You spent $748 incl. GST on miscellaneous office supplies at Officeworks

State five limitations of break-even analysis : State five limitations of break-even analysis. Suppose the company desires to make a profit of shs.195,000, what should be the output in units?

How to prepare operating statements for each of the periods : Solo Limited makes and sells a single product. Prepare operating statements for each of the periods 1 to 4 , based on absorption costing principles.

Geometry and polarity for clf3 molecule : What is the molecular geometry and polarity for ClF3molecule? Select the correct answer below:

How much unburned oxygen will be in the products : Octane (C8H18) is burned with 30% more air. If combustion is completed, how much unburned oxygen will be in the products?

Define the concept of apportionment of costs : Define the concept of apportionment of costs and apportion the various costs into various departments on equitable basis. Calculate the payments of a worker

User Account

All Pages

State five limitations of break-even analysis

Reference no: EM132560627

Reference no: EM132560627

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT