Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Budgeted information for Aberdale limited for the year ahead, analysed byproduct, is represented below.Sales units ( 0 0 0 s ) Variable Costs ( per

image text in transcribed
Budgeted information for Aberdale limited for the year ahead, analysed byproduct, is represented below.Sales units (000s)Variable Costs ( per unit)Attributable Fixed Costs ('000)unit)Required:2state yoProduct|1100rassumptions.5.80275Product ll Product ll6.00337General overheads, which are apportioned to products as a percentage ofsales (i.e. total revenue), are budgeted at 1,668,000b) Recalculate the budgeted profit of Aberdale if Product Ill iseffect on ales of thea) Calculate the total budgeted profit for Aberdale Limited broken downby product. Please also show the profit per unit.5.20products. Please296[5 marks](5 marks]An increase in advertising spend is being considered by management, i.e.in additional to that which is already spent on Product I.c) Calculate the minimum extra sales units required of Product I to coveradditional advertising expenditure of 80,000. PIease assume all otherexisting fixed costs remain unchanged.[4 marks]elling rice of Product IL Please clearly state any assumptions mselling prices made.d) Calculate the increase in sales volume of Product Il that is necessary ine) Discuss three factors that influence management's decision onwhether or not the company should stop selling a loss-making product(5 marks][6 marks]
solve in 60 mins please i will thumb up
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions