Question
i need fast answer Question 3a CVP Bryson Ltd manufactures and sells golf sets throughout Australia. Bryson Ltd sold 90,000 golf sets in the 2021
i need fast answer
Question 3a CVP
Bryson Ltd manufactures and sells golf sets throughout Australia.
Bryson Ltd sold 90,000 golf sets in the 2021 financial year. Total sales were $10,080,000 and the corresponding cost of sales was $4,950,000 (cost of sales was considered as a variable cost).
In addition, other expenses incurred by the company were as follows:
Advertising Division | Management Division | |
Variable cost (per golf set) | $4 | $6 |
Fixed cost | $1,400,000 | $2,100,000 |
Required:
3a Calculate Bryson Ltds contribution margin per unit.
3b) Using the relevant information in 3a, calculate Bryson Ltds breakeven point in units and dollars
3c) Using the relevant information in 3a, calculate the net profit or loss earned by Bryson Ltd in the financial year ended 30 June 2021.
Bryson Ltd is considering outsourcing part of the manufacturing to another company. Outsourcing will enable the company to reduce fixed costs by 20%, although the total variable cost per golf set will increase by $3.
Required:
3d) Using the relevant information in 3a and any additional changes required in this question, calculate the number of golf sets to be sold if Bryson Ltd wishes to achieve the same amount of net profit in part 3c.
Question 3e CVP
3e) Advise whether or not the proposed outsourcing outlined in 3d is a better option. Discuss quantitative and qualitative factors. Show all workings.
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