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
You are assisting the accountant on the preparation of the final accounts of a business with a year-end of 31 December. A trial balance has been drawn up and a suspense account ope
Standard Costing A standard cost is a predetermined calculation of how much is supposed to be incurred under specific particular working conditions. It is not an average of pa
Now along with the illustration of Ramsons at hand, this is not tough for us to understand that Ramsons have invested the 'money to make money'. Where has Ramsons invested the mone
Learning Objective: After completing the project, the student will have gained familiarity, understanding and mastery of programming a realistic but simple application in Assembly
Integrated Ledger System An integrated account ledger system, which has a number of features that may be viewed as preferable to the interlocking ledger system. In present dec
Which method of measuring costs associated with production is more widely used in practice A. Normal Costing B. Actual Costing C. Both are used equally D. Neither one
Implementation of Re-Apportionment of Overheads The re-apportionment of service department costs may be implemented in a number of methods. The Two extremes are as a) Wh
Three oligopolists, A, B and C, produce an identical product, Q. Q is produced under conditions of constant costs, that is, AC = MC = $100. The market demand schedule for Q is:
After you have studied this section, you should be capable to: know the idea of funds flowing by a business in a dynamic situation understand the role of working capital
Under which inventory costing method could increases or decreases in income from operations be misinterpreted to be the result of operating efficiencies or inefficiencies?
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