JK Limited has prepared a budget for the next 12 months when it intends to make...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
JK Limited has prepared a budget for the next 12 months when it intends to make and sell four products, details of which are shown below: Variable cost Selling price per unit (£) Sales in units Product (thousands) per unit (£) 10 20 14.00 K 10 40 8.00 50 4 4.20 M 20 10 7.00 Budgeted fixed costs are £240000 per annum and total assets employed are £570 000. You are required: (a) to calculate the total contribution earned by each product and their combined total contributions; (2 marks) (b) to plot the data of your answer to (a) above in the form of a contribution to sales graph (sometimes referred to as a profit-volume graph) on the graph paper provided3; I (c) to explain your graph to management, to comment on the results shown and to state the break-even point; (6 marks) (4 marks) (d) to describe briefly three ways in which the overall contribution to sales ratio could be improved. (3 marks) CIMA Stage 2 Cost Accounting JK Limited has prepared a budget for the next 12 months when it intends to make and sell four products, details of which are shown below: Variable cost Selling price per unit (£) Sales in units Product (thousands) per unit (£) 10 20 14.00 K 10 40 8.00 50 4 4.20 M 20 10 7.00 Budgeted fixed costs are £240000 per annum and total assets employed are £570 000. You are required: (a) to calculate the total contribution earned by each product and their combined total contributions; (2 marks) (b) to plot the data of your answer to (a) above in the form of a contribution to sales graph (sometimes referred to as a profit-volume graph) on the graph paper provided3; I (c) to explain your graph to management, to comment on the results shown and to state the break-even point; (6 marks) (4 marks) (d) to describe briefly three ways in which the overall contribution to sales ratio could be improved. (3 marks) CIMA Stage 2 Cost Accounting
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
JK Limited has prepared a budget for the next 12 months when it intends to make and sell four products, details of which are shown below: Budgeted fixed costs are 240 000 per annum and total assets...
-
Global Green Books Publishing is continuing to produce customized eBooks as a key new product line for it as a successful printing and publishing company. It has developed a template to help plan job...
-
The rate of inflation for the next 12 months (Year 1) is expected to be 1.4 percent; it is expected to be 1.8 percent the following year (Year 2); and it is expected to be 2.0 percent every year...
-
Okay Optical, Inc., (OOI) began operations in January 2013, selling inexpensive sunglasses to large retailers like Walgreens and other smaller stores. Assume the following transactions occurred...
-
For the same given as in Problem 5, show the determination of YE graphically as in the bottom panel of Figure 17.3. In Problem 5 Given C = 100 + 0.8Y, M = 150 + 0.20Y, I = 100, and X = 350
-
Specify, design, and implement a class that can be used to simulate a lunar lander, which is a small spaceship that transports astronauts from lunar orbit to the surface of the moon. When a lunar...
-
J Wild eared business on 1 April 2002 selling one model of digital cameras on hire purchase. During the year to 31 March 2003 he purchased 2,000 cameras at a uniform price of 90 and sold 1,900...
-
Record the following transactions of the State of Delaware general government activities for the year ended June 30, 20X6. (Amounts are stated in thousands of dollars.) Make all required entries. 1....
-
The following is the ending balances of accounts at June 30. 2021. for Excell Company. Account Title Debits Credits Cash 5 59,000 Short-term investments 01,000 Accounts receivable (net) 256,000...
-
The following diagram represents a high-temperature reaction between CH4 and H2O. Based on this reaction, how many moles of each product can be obtained starting with 4.0 mol CH4?
-
A structural formula of a monosaccharide is shown below: HOH2C- HO a. Classify this monosaccharide (e.g., ketotetrose) b. Does it have the D or L configuration?. c. Specify the type of ring this...
-
Explain how the roles of both the data administrator and the database administrator both strengthen and weaken control. Briefly explain the nature of the trade-offs involved.
-
How might auditors be users of a data repository system? How might auditors' use of the data repository system give insight into the problems of other users?
-
Why is obtaining support from programmers and systems analysts for a data repository system sometimes difficult? Why is it important to obtain their support? How might their support be obtained?
-
Briefly explain how separation of duties can be used to increase control over the DA and the DBA.
-
There are two types of remedial measures that can be used to increase control over the DA and the DBA: (a) administrative controls, and (b) technical controls. Explain the nature of each set of...
-
Create a vision statement for your organization. Vision refersto the long-term outlook for your business. What do you ultimatelywant it to become? 2 answers
-
A non-charmed baryon has strangeness S = 2 and electric charge Q = 0. What are the possible values of its isospin I and of its third component I z ? What is it usually called if I = 1/2?
-
Minimight Company has never paid a dividend, and there are no plans to pay dividends during the next three years. But, in four yearsthat is, at the end of Year 4the company expects to start paying a...
-
At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8 percent compounded annually. (a) How much is in the account today? (b) How much would be in the account if...
-
ZR Corporations stock has a beta coefficient equal to 0.8 and a required rate of return equal to 11 percent. If the expected return on the market is 12.5 percent, what is the risk-free rate of...
-
Docile LLC is an audit firm based in Tarrytown, NY. Docile has accepted a new engagement to perform audit services for Danger T, Inc. The auditor professional responsibilities is to: (a) The client...
-
The following are types of assurance services with the exception of: (a) Legal counsel engagement (b) Facilitation engagement (c) Advice engagement (d) System security engagement
-
An accountants objective of a review of the financial statements of a non-issuer (nonpublic company) is to provide what type of assurance? (a) Absolute assurance (b) Limited assurance (c) No...
Study smarter with the SolutionInn App