Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Beta company sells blouses in kantamanto. The blouses are imported from Togo and are sold to customers at Katamanto at a profit. Sales person

Beta company sells blouses in kantamanto. The blouses are imported from Togo and are sold to customers at Katamanto at a profit. Sales person are paid basic salary plus decent commission of GHS 14 on each sale made by them. Selling price and expenses data is given below Selling Price Ghc 80 36 14 Total Variable Cost 50 Variable: Invoice Cost Sales Commision Fixed Expenses: Rent 160,000 Marketing 300,000 Salaries 140,000 Total Fixed Expenses 600,000 You are required; a. Compute the break-even point in units and in cedis using the information given above using the equation method. b. Prepare a CVP graph (break-even chart) and show the break-even point on the graph, if the company budgets to 20,000 blouses this year. c. What would be the net operating income or loss if the company sells 18,500 blouses in a year? d. If the manager is paid a commission of GHS 6 blouse (in addition to the salesperson's commission), what will be the effect on the company's break-even point? e. What will be the break-even point of the company if commission is entirely eliminated and salaries are increased to GHS 214,000?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer a To compute the breakeven point in units and in cedis using the equation method we can use t... 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_2

Step: 3

blur-text-image_3

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

Accounting Information Systems basic concepts and current issues

Authors: Robert Hurt

3rd edition

130855849X, 978-1308558493, 78025338, 978-0078025334

More Books

Students also viewed these Accounting questions

Question

x-3+1, x23 Let f(x) = -*+3, * Answered: 1 week ago

Answered: 1 week ago

Question

Die Kunst ist lang und kurz ist das Leben

Answered: 1 week ago