Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Example of Profit Volume Graph
The summary results of a company are given as:
Product
A
B
C
Total
Shs.000
Sales revenue
300
200
100
600
Variable costs
150
120
70
340
Contribution
260
Fixed costs
Net profit
160
Contribution sales ratio
0.5
0.4
0.3
0.433
Required
1. Prepare a profit volume graph that shows the overall consequences.
2. Prepare an amended profit curve whereas the market forces have led to a switch of Shs. 200,000 of sales from product A to product C
3. Prepare a summary that shows the value of each of the following for both the amended results and the original results
a) Net profit
b) Break-even point
c) Margin of safety
d) Overall contribution sales ratio
Solution
The shown profit volume graph displays the existing and amended cost curves.The amended data that implements the switch of Shs. 200,000 of sales to product C from product A may be summarized as:
50
210
380
80
90
220
Contribution sales ration
0.50
0.40
0.30
0.367
what is marginal costing and explain concept of marginal costing
1.Assume that Abel business corporation is purchasing new equipment, for 350,000$ at the beginning of 2014. Assume that Abel business corporation is in the 30% corporate tax bracke
Types of Standard Costs The standard cost set could be ideal, basic, attainable or current. i. Basic Standards: These are long term standards that would keep unchanged ov
Q. Calculate break-even level of sales volume and revenue? Z-Boxes sell for £299 and their variable production cost is £99. Research and development, and fixed production overh
wont questions on it and a valuable answer
Question The statements of comprehensive income for three entities for the year ended 30 September 2009 are presented below: SOT PB UV
Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%. Required: A) Assume break-even volume in dollars is $1,500,000. What are total fixed
Cost Behaviour "Profitability is only around the corner." This is a general expression in the business world; you might have heard or said this yourself only. But, the reality
Great Pumpkin Farms just given a dividend of $3.50 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors need a 16 pe
Q. What was the amount of cash a firm collected from its customers, given the following fact set? The firm's balance sheets at the beginning and end of the year show gross accou
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd