Course Code : ACCT: 230

Course Name : Introduction to Managerial Accounting

Please answer this Section , I will be thankful of you

Part - C 3. The company will invest $150,000 in a project and average annual income $50,000. The investment will provide the following inflows: Question 3: Numerical Problems: Note: Answer any two of the following questions: (SLO 2, 5, 6) (24 Marks) 1. From the following particulars: Year 1 2 Sales Variable Cost Fixed Cost $ 120,000 $ 60,000 $ 60,000 Cash inflow $ 25,000 45,000 30,000 50,000 70,000 3 4 5 Calculate: 1. Contribution 2. Profit Volume(P/V)Ratio 3. Fixed cost for two periods 4. Break Even Point in $ sales 5. Margin of Safety 6. Profit when sales are $500,000 Calculate: 1. Net present value at 15% discount factor. 2. Payback period 3. Accounting rate of return 2. The expenses for budgeted production of 5,000 units in a Manufacturing Company is given below: 1 Particulars Materials Labor Variable over head Fixed overhead ($50,000) Variable expenses (Direct) Selling expenses (10% fixed) Distribution expenses ( 25% fixed) Administration expenses ($75,000) Total cost per unit Per unit $50 25 20 10 10 20 10 15 S160 Note: 15% discount factor (Table A-3): Year 15% discount factor 0.8696 2 0.7561 3 0.6575 4 0.5718 5 0.4972 3 Prepare a flexible budget for production for 10,000 and 20,000 units and indicate cost per unit at both the levels