Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello again , there are 2 theoretical part attached in seminar 4-5 file : 1/ q1 answer c can you write it in a very
Hello again , there are 2 theoretical part attached in seminar 4-5 file : 1/ q1 answer c can you write it in a very simple English words with mobile bill example . 2/ q 3 also can you write it in simple English words with electricity example 3/ the ppt file if you can surmised it in 3 points each slide with very very simple English words Note: i need it in 3 hours please and I cant increase the price , please
Seminar 4-5 Solution 1. 2. Unit sales to break even = Fixed expenses CM Ratio = 255,000 b. Per unit contribution margins for Products A, B, and C are as follows: Product A: 60,000 20,000 units = 3 per unit 27% = 944,444 Product B: 200,000 Product C: 80,000 100,000 units = 2 per unit 80,000 units = 1 per unit Product mix for Products A, B, and C: Product A: 20,000 Product B: 100,000 Product C: 80,000 (20,000 + 100,000 + 80,000) = 10% (20,000 + 100,000 + 80,000) = 50% (20,000 + 100,000 + 80,000) = 40% 3. The statement is true. The variable cost of each unit is the same irrespective of the level of output. The effective fixed cost per unit reduces as the level of output expands and increases as it contracts. This assumes that variable costs are strictly linear - for example, no economies of scale. It also assumes that fixed costs remain fixed over the entire range - no 'steps' in the fixed costs. 4. Imagine that a business renders two services (both with very heavy demand), with the following profiles: Service A Service B Selling price per unit 100 70 Variable costs 60 40 Contribution per unit 40 30 Both services require the input of particular employees who have special skills. The business employs six of these, each working a 35-hour week (210 hours in total). Service A requires 30 minutes (0.5 hours) of the skilled staff and Service B 20 minutes (0.33 hours). Contribution per hour 80 (40/0.5) 90 (30/0.33) This means that the business should choose to render Service B in preference to Service A, despite the fact that the latter has the higher contribution per unit of the service provided. To prove this point: Possible contribution per week for Service A = 40 (210/0.5) = 16,800 Service B = 30 (210/0.33) = 21,000 This shows that Service B more effectively uses the scarce employees' time than does Service A, despite Service A having a higher contribution per unit of service rendered. 5. a) 46,200/(6.60 - 5.28) = 35,000 units 10,000/ 0.70 = 14,285.71 (14,285.71 + 46,200)/(1.32) = 45,822.51 = 45,823 units 20,000/ 0.70 = 28,571.43 (28,571.43 + 46,200)/(1.32) = 56,645.02 = 56,646 units 6. a) 1,500,000 x 0.35 = 525,000 b) 300,000/ 0.6= 500,000 (500,000 + 525,000)/0.35 = 2,928,571.4 7. M LtdStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started