Question
ACCY801 Accounting & Financial ManagementTrimester 2, 2020AssignmentStudent number:6463319Family name:Al KulaybGiven name:IbrahimPART A (45 marks):Sales (150,000 units)1,140,000$ Variable expenses690,000$ Contribution margin450,000$ Fixed expenses201,000$ Profit249,000$ Required:a)b)Sales (units)050,000100,000150,000Expected
ACCY801 Accounting & Financial ManagementTrimester 2, 2020AssignmentStudent number:6463319Family name:Al KulaybGiven name:IbrahimPART A (45 marks):Sales (150,000 units)1,140,000$ Variable expenses690,000$ Contribution margin450,000$ Fixed expenses201,000$ Profit249,000$ Required:a)b)Sales (units)050,000100,000150,000Expected profit (no change)Expected profit (machinery & production methods updated)c)d)PART B is on the next page.(10 marks)(10 marks)(10 marks)Yacca Limited has prepared the following profit analysis, for the current financial year:Management are considering a range of options to improve profitability. These options include reducing the selling price by $0.15 per unit and updating machinery and production methods. If machinery and production methods are updated, fixed expenses will increase by $40,000 per year and variable expenses will decrease by $1.00 per unit. However, management are concerned at the increased risk from changes to the level of operating gearing. If the selling price is reduced by $0.15 per unit, the number of units sold is expected to increase by 10%. There is no reason why management cannot reduce the selling price and update machi
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