Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Engineering Ltd . specialises in the sales of TR 9 valves. The owner has provided you with the following information: Sales Price per TR

ABC Engineering Ltd. specialises in the sales of TR9 valves. The owner has
provided you with the following information:
Sales Price per TR9 valve 50
The Marginal Cost per TR9 valve is 36
The Fixed Costs per month are 6,000.
You are required to calculate:
A. How many TR9 valves must the company sell to break even?
(10 marks)
B. If the company sells 500 TR9 valves per month calculate the Margin of Safety and
the profit. (10 marks).
C. Calculate the Contribution to Sales ratio and the breakeven in value.(10 marks).
D. How many games must the company sell to earn a profit of 3,000?(10 marks).
E. The owners of the company inform you that the Fixed Cost will increase by 500
per month and the marginal cost by 0.50 per TR9 valve. How many TR9 valves
must the company sell to breakeven.? (10 marks).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accountancy And The Changing Landscape Of Integrated Reporting

Authors: Ioana Dragu

1st Edition

1522536221, 9781522536222

More Books

Students also viewed these Accounting questions

Question

What do you see as your biggest strength/weakness?

Answered: 1 week ago