Solution-What would be the effect on budgeted income

What would be the effect on budgeted income

Assignment Help Managerial Accounting

Reference no: EM13501927

The budgeted income statement by product lines of Multi Products Ltd.,

for 2003 is as follows:

	Product A	Product B	Product C
Sales	Rs. 2,00,000	Rs. 5,00,000	Rs. 3,00,000
Variable expenses:
Cost of goods sold	90000.00	1,70,000	1,50,000
Selling expenses	30000.00	90,000	45,000
Overhead:
Fixed	36000.00	90,000	54,000
Administrative	16000.00	40,000	24,000
Income before tax	28000.00	10,000	27,000
Income tax @ 40%	11200.00	4,000	10,800
Net income	16800.00	6,000	60,200

All products are manufactured in the same facilities under common administrative control. Fixed expenses are allocated among the products in proportion to their budgeted sales volume:

(a) Computer the budgeted break-even point of the company as a whole, from the data provided.

(b) What would be the effect on budgeted income if half of the budgeted sales volume of Product B were shifted to Product A and C in equal rupee amounts, so that the total budgeted sales in rupee remains the same?

(c) What could be the effect of the shift in the product-mix suggested in (b) above on the budgeted break-even point of the whole company?

Reference no: EM13501927

Questions Cloud

Advise the management about the right choice : Advise the management about the right choice of an alternative so as to maximize profits - The machines for both the products are common. However, cream is produced on a special purpose machine.

Explain commercially available concentrated nitric acid : The concentration of commercially available concentrated nitric acid is 70.0 percent by mass, or 15.9M in 100 grams of solution, there are 1.11 mol of HNO3. Calculate the volume of 100 g of solution

Calculate taxable income or tax payable : Bad debts: on the advice of her accountant, the company raised for the first time a Provision for Bad Debts. No amounts have been debited to the account but there is concern for an amount of $1200 owed by a business that is insolvent.

Evaluate the ph of each of these solutions : What are the major species present in 0.250 M solutions of each of the following acids. Calculate the pH of each of these solutions.

What would be the effect on budgeted income : What would be the effect on budgeted income if half of the budgeted sales volume of Product B were shifted to Product A and C in equal rupee amounts, so that the total budgeted sales in rupee remains the same?

How to calculate the uncertainty in the position : Using Heisenberg's uncertainty principle, calculate the uncertainty in the position of a 1.60 - mg mosquito moving at a speed of 1.50 m/s if the speed is known to within +/- 0.01 m/s.

Explain concept of sunk cost and opportunity cost : Explain the concept of sunk cost and opportunity cost with example and calculate the revenue needed to earn a target operating income of Rs 100,000

The reactants is measured for various initial concentrations : A reaction has the stoichiometry A + B + C ? P. The concentration of P one minute after mixing the reactants is measured for various initial concentrations of reactants

Explain the vapor pressure of c4h10 at a temperature : The vapor pressure of the liquid C4H10 is 562.7mmHg at a temperature of 264.6K. The enthalpy of vaporization for this liquid is 22.4kJ/mol. What is the vapor pressure of C4H10 at a temperature of 286.6K in mmHg

User Account

All Pages

What would be the effect on budgeted income

Reference no: EM13501927

Reference no: EM13501927

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT