Determine the budgeted profit for period, Financial Accounting

Assignment Help:

Questikon:

For Period Wilson Ltd has produced the following budget figures for Product X:

For the period, the budgeted fixed overhead is Rs100,000 and the budgeted sales are 12,000 units.

Required:

a) Determine the budgeted profit for Period 1.
b) Determine ( nearest whole unit):
(i) The Break Even Point (units)
(ii) The Margin of Safety (units)

c) The sales manager has suggested the given three options for the next period and has asked for an evaluation:

1) Reduce the selling price to Rs 75 per unit. This will increase sales by 2,000 units. Labour costs will increase by Rs 2 per unit and fixed overheads will decrease by Rs 10,000.

2) Increase the selling price to Rs 85 per unit. This will decrease sales by 4,000 units and decrease fixed overheads by Rs 10,000.

3) Reduce the selling price to Rs 70 per unit. This will increase sales by 5,000 units, increase fixed overheads by Rs 12,000 and decrease direct materials costs by Rs 3 per unit.


Related Discussions:- Determine the budgeted profit for period

Journalize the foregoing transactions and post to the a/c, During the fourt...

During the fourth quarter of 2006, Cablevision, Inc., generated excess cash, which the company invested in securities, as follows: On Nov. 12 purchased 1,000 shares of common st

What do you mean by put in shares of stock, Puts - A put is an option to se...

Puts - A put is an option to sell a number of shares of stock at a stated price within a definite period. Gain or loss on a put is short or long term depending on holding period of

Sundry matters-financial statement , Sundry Matters 1) The accounting ...

Sundry Matters 1) The accounting system is also appropriate for departmental accounts. 2) The branch stock account is a practical means of controlling stock at the branch.

What are the january cash collections from sales, O'Neill Co. has $298,106 ...

O'Neill Co. has $298,106 in accounts receivable on January 1. Budgeted sales for January are $840,001. O'Neill expects to sell 20% of its merchandise for cash. Of the remaining 80%

Estimate the cost, Olivia has received a $15 gift certificate that is redee...

Olivia has received a $15 gift certificate that is redeemable only for roasted peanuts. Bags of roasted peanuts come in two sizes, regular and jumbo. A regular bag contains 30 pean

Need help completing self assessment return, I am an AAT student studying l...

I am an AAT student studying lvl 3 AAT at college. I wish to learn how to complete self assessment end of year tax return forms for other people. That is because I have already bee

.branch accounting., speciman of accounts preparation in stock and debtor...

speciman of accounts preparation in stock and debtor system.

Determine expected future cash flows, Q. Determine expected future cash flo...

Q. Determine expected future cash flows? A rights issue will be a smart source of finance to Tirwen plc as it will reduce the gearing of the company. The current debt/equity ra

What is amortization, Q. What is Amortization? Amortization -Periodic a...

Q. What is Amortization? Amortization -Periodic and Gradual reduction of any amount, like the periodic write-down ofa BOND premium, cost of an intangible ASSET or periodic paym

Balance sheet-trusts laws and accounts, BALANCE SHEET Grouping of items...

BALANCE SHEET Grouping of items:   Items in the Balance Sheet should be grouped under appropriate headings. In particular, a trust operating the provisions of the Trustee Act

Write Your Message!

Captcha
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