Conglomerate Inc is a multinational business that owns many companies in many different countries. All the companies use the $ as their currency. Each of the five scenarios is independent of the others.

Requirement 1

Ay Inc sells three products. The budgeted fixed cost per month is $500,000. The budgeted contribution to sales ratio (C/S ratio) and sales mix per month are as follows:

Product	Sales mix.	C/S ratio
Loop	38%	22%
Moop	40%	35%
noop	22%	43%

What is the breakeven sales revenue per month? Show all workings

Requirement 2

Bee Inc manufactures and sells a single product (the dazzler) $30 per unit. In August, budgeted volume was 80,000 units, the margin of safety was 27% and the budgeted contribution to sales ratio was 32%.

What were the budgeted fixed costs for August? Show all workings

Requirement 3

Cee Inc sells vitamin tablets and vitamin supplements. The tablets are sold every week and the supplements are sold every month. The unit costs for each are:

	Vitamin tablets ($)	Vitamin supplements ($)
Selling Price	3.00	6.00
Direct Materials: ingredients	0.70	1.20
Direct Materials: packaging	0.35	0.50
Direct Labour	0.10	0.30
Variable overhead	0.20	0.40
Fixed overhead	1.10	1.30

Budgeted production is 1,500 units per week of the vitamin tablets and 3,200 units permonth of vitamin supplements

If the vitamin tablets and vitamin supplements are sold in their budgeted mix, what is the

budgeted breakeven revenue? Show all workings.

budgeted breakeven revenue? Show all workings.

Dee Inc manufactures and sells three products, the alpha, the gamma and the epsilon. Data on the three products is as follows:

	Alpha	Gamma	Epslon
Financial	$	$	$
Selling price	104	98	112
Direct materials	30	36	26
Direct labour ($18 per hour)	36	27	54
Variable overhead	12	9	18
Other:	Units	Units	Units
Expected demand	4000	3000	1200

At present, there are only 12,000 labour hours available.

How will these products be ranked in order to determine the optimum production plan? Show

all workings.

Requirement 5

One of the managers at Eee Inc has made the following statements about cost-volume-profit (CVP) analysis:

1. CVP analysis allows for fluctuating selling prices.

2. CVP analysis assumes productivity remains unchanged.

3. CVP analysis assumes that the only factor affecting cost is volume.

Which of the above statements is/are false?

Creditors days Trade payables X 365 Purchases Working capital Economic order quantity (EOQ) 2DC Cost of capital Cost of equity ke = Do(1+9) + g X 100 or H Po or Cash management (1) 2NF Z= Cash management (2) Ve+Va S= 3 Learning curve Financial ratios Gross margin (%) Gross profit Revenue Operating margin (%) Operating profit X 100 Revenue Return on capital employed (%) Operating profit X 100 Shareholders equity + Long-term debt Return on equity (%) Profit after taxation x 100 Shareholders equity Return on total assets (%) Profit after taxation x 100 Total assets Asset turnover Revenue Total assets Current ratio Current assets Current liabilities Quick test (acid ratio) Current assets - Inventory Current liabilities Working capital turnover Revenue Net working capital Inventory turnover Cost of sales Inventory Inventory days Inventory X 365 Cost of sales Debtors days Trade receivables X 365 Revenue ke = R, + B (Rm -RE) WACC ve Va ke + ka (1 -t) Ve+Va Parity theory PPPT (1+i) S1 = So (1+in) IRPT (1+ip Fo = So (1+in) Financial arithmetic y = axb Trade creditors X 365 Purchases If Purchases' figure not available, use 'Cost of sales Financial gearing (%) Long-term debt X 100 Long-term debt + Shareholders equity Interest cover (times) Operating profit Interest charges Earnings per share (EPS) Profit after taxation Number of ordinary shares in issue Price learnings ratio (P/E) Share price Earnings per share Earnings yield Earnings per share Share price Dividend per share (DPS) Total dividends for the period Number of ordinary shares in issue Dividend cover Profit after taxation Total dividends for the period Dividend payout (%) Total dividends for the period x 100 Profit after taxation or DPS X 100 EPS Dividend yield Dividend per share Share price Variances Sales price (Actual selling price - Budgeted selling price)