Financial accounting mock test. I need the answers from questions 1 to 7.Please show all the work.

section B Longer questions. Marks are shown on the questions. Please show workings clearly. Hogarth makes pencils in London. Hogarth has the capacity to manufacture 3,000,000 pencils per month. The costs are: I , 200, ooo J60,coo Raw materials: 0.4 per pencil Wages: 0.2 per pencil Overheads: 800,000 Q, OCT, 000 a g 1 6,000, ooo The selling price is 0.9 per pencil. The marketing department have predicted that sales should reach 2,800,000 pencils per month. Required: i. Sales What is the total profit and the profit per pencil per month? Prepare a marginal costing Profit & Loss account. You may find the layout below useful 4 marks Less Variable Costs: Raw Materials Wa es Total Variable Costs Contribution Overheads O eratin Profit Units L, oo 000 z eooooo 00 O 800 ooo Unit Cos Price Total Cos Price 2 520000 20 oo 16 0 ii. iii. iv. vie vii. What would be the profit if sales were only 2,600,000 pencils? 4 marks What would be the impact on the operating profit of an increase of sales volume of 4 marks What is the monthly break-even point for Hogarth (expressed in units, sales value, percentage of capacity, and time needed to reach breakeven assuming 30 days to a month)? 4 marks What is the safety margin? 4 marks If Hogarth wants to make a profit of 200,000 how many pencils should he sell? Is this VeaQa11c realistic? 4 marks Could an extra order of 200,000 pencils at the selling price of 0.7 be accepted? 4 marks 28 marks Total Ce document est une proprit exclusive de Grenoble Ecole de Management. II ne peut faire l'objet d'aucune reproduction ni d'aucune utilisation extrieure sans l'autorisation Grenoble Ecole de